The market for DRAM is likely to enter a state of oversupply later in the third quarter, said Oh-Hyun Kwon, head of Samsung Electronics' chip business, at a media conference in Taipei on September 7. The supply glut was due to weakening PC sales.
Kwon pointed out that total DRAM output worldwide will certainly grow sequentially in the third quarter, as suppliers ramp up their production using more advanced processes. However, if PC sales continue to slow, the DRAM sector will see an oversupply through the first quarter of 2011, according to Kwon.
Kwon expressed more optimism about the NAND flash business, indicating prices for the memory would trend down at a slower pace and stabilize later in the second half of 2010. Unlike DRAM that is closely related to PC products, Kwon believes NAND flash memory will continue to be driven by mobile devices such as smartphones and tablet PCs, and grow its penetration in emerging applications.
Compared to the PC market, the consumer electronics sector has a better outlook, Kwon pointed out.
Samsung is looking to volume produce DRAM products using 35nm technology later in 2010, Kwon said. As for NAND flash, Samsung expects to migrate to 20nm-class process technology in 2011.
In addition, Kwon noted that Samsung's total capex for its memory and logic businesses would reach US$10 billion in 2010, and plans to expand its capacity for memory chips are on schedule.
Samsung is constructing its Line 16 for DRAM, NAND and next-generation memory products, which is expected to come online in 2011. Monthly capacity at the new production line is estimated at 200,000 12-inch wafers. It is also expanding capacity at its existing Line 15, which only focuses on DRAM production.