In the face of growing demand for mobile RAM, specialty DRAM and NAND flash memory, key memory chipmakers are more prone to allocate their 12-inch capacity to the faster-growing segments at the expense of PC DRAM, according to industry sources.
Samsung Electronics and Elpida Memory, for instance, have both scaled up their production for mobile RAM chips while lowering output for standard DRAM, the sources indicated. Samsung has also given more emphasis to NAND flash, with plans to ramp up new capacity for the chips later in 2011, the sources added.
The sources pointed out that Elpida's in-house capacity at its Hiroshima plant has almost all been shifted to producing mobile RAM chips. The Japan-based vendor now purchases DRAM directly from Taiwan-based Rexchip Electronics and ProMOS Technologies.
Micron Technology, which also outsources PC DRAM production to its Taiwanese partner, previously revealed that a new NAND flash fabrication facility in Singapore would commence volume production in the second quarter of 2011. The US chip vendor has also entered into a deal with Unity Semiconductor to jointly develop new solutions to replace flash memory, not to mention its earlier acquisition of Numonyx. These moves all suggest that Micron is no longer paying attention to the volatile DRAM market, the sources said.
In addition, Taiwan's DRAM chipmakers have moved to diversify their production, according to the sources. Nanya Technology and Inotera Memories recently unveiled plans to focus on mobile RAM, high-end DRAM for servers and products for consumer electronics applications. Powerchip Technology and ProMOS are also looking to expand their foundry businesses for diversification.
With available capacity for PC DRAM set to shrink, the sources expect chip prices to stop falling soon and stabilize. Prices for standard DRAM could grow later in 2011, when demand for NAND flash surges.