Supply for DDR3 memory will become tight in April or May after reaching a balance point in March 2011, according to Elpida Memory president and CEO Yukio Sakamoto. DRAM inventory at PC OEMs is now at 0.9 months, and will drop to below 0.8 months after mid-March.
With clients rebuilding their inventory, DRAM contract prices are expected to start rising with 2Gb DDR3 parts likely to approach US$3 in March, Sakamoto said.
In addition, Sakamoto forecast that the number of players in the DRAM market will reduce to three, probably two, after another wave of eliminations, mergers or acquisitions. He also commented that DRAM companies should step into producing mobile DRAM in order to survive.
Elpida's in-house capacity at its Hiroshima, Japan plant has almost all been shifted to producing mobile DRAM chips, as the company now purchases PC DRAM directly from its contract partners in Taiwan.
Sakamoto made the remarks during a video conference call on February 9.
Elpida has unveiled plans to start selling its stock in Taiwan on February 25, through an issuance of Taiwan depositary receipts.