Prices for DRAM chips are expected to rebound in August, and begin to stabilize through October, according to Frank Huang, chairman of Powerchip Technology. But seasonal factors may drag down prices in November and December, said Huang.
Huang suggested that the recent drop in DRAM prices is the result of slower market demand, rather than fierce competition among chip suppliers. Huang also attributed the price weakness to PC OEM cost-control measures to cut the memory content for some products.
Huang expressed optimism about the DRAM industry outlook over the next 2-3 years, anticipating new capacity will be limited to help the industry grow more healthily.
In addition, Huang noted that Powerchip's plan to deploy 45nm process technology at its 12-inch fabs in early 2011 remains unchanged. The company expects to take delivery of its first set of immersion scanner equipment in September at the earliest, Huang added.
Huang made the remarks on the sidelines of a recent event held by Walton Advanced Engineering, a memory backend service provider.
Walton inaugurated a new plant, formerly a LCD module (LCM) plant from HannStar Display, on July 23.