Growth in tablet PC usage is definitely not good news for DRAM makers, according to Peter Su, chairman of memory module maker Transcend Information. Su commented that DRAM oversupply at present should not solely be blamed on the supply side.
There is no doubt that tablet PCs change the way people use computers, and are increasingly popular, said Su. With more roll-outs of tablet-style devices, consumption of DRAM chips could shrink substantially, Su indicated. In addition, unlike mobile RAM, standard DRAM targets less-attractive applications for growth, Su added.
Capacity ramp-ups by DRAM suppliers using more advanced processes actually have little impact on the market, Su said. For chip producers especially Taiwan-based players, transitioning to a 40-class production node is now a must, Su indicated. Taiwan-based DRAM companies should speed up their 40nm-class process transitions to allow them to produce mainstream 2Gb chips at lower costs, Su urged.
DRAM prices are unlikely to see a substantial rise in the first half of 2011, but have little room for further significant falls, Su predicted. DDR3 quotes are arriving near suppliers' manufacturing costs, Su said.