DRAM market conditions in the second half of 2016 will be better the first half, as end-market demand picks up, according to Pei-Ing Lee, chairman for Inotera Memories.

DRAM demand for handsets, TVs and set-top boxes (STB) is expected to grow in the second half of 2016, Lee said on the sidelines of the company's shareholders meeting on June 2. Meanwhile, demand for networking devices, servers and PCs will be better compared to that in the first half.

Seasonality will also drive overall DRAM demand in the second half of 2016, and the supply/demand balance in the market will be more improved, Lee indicated.

DRAM prices in the second quarter of 2016 already fell more moderate compared to the first quarter, Lee noted. In the second quarter, demand for desktops and notebooks was poorer than expected while that for handsets was a disappointment. Chip prices were under downward pressure due to still-high levels of inventory held by suppliers, Lee said.

Inotera slipped into the red in the first quarter of 2016 with lower revenues, due to falling DRAM ASPs and shipments. The results marked the company's first quarterly loss in three years. Inotera expects to post a double-digit sequential increase in bit shipments in the second quarter, and is set to convert all of its wafer start capacity to 20nm process technology by the end of the quarter.

In other news, Taiwan's Fair Trade Commission (FTC) has approved the planned merger between Inotera and Micron Semiconductor Taiwan (MST). Inotera expects to complete its merger with the Taiwan-based unit of Micron Technology in the middle of 2016, and will delist from the Taiwan Stock Exchange (TSE) after closing of the deal.