DRAM market grows 20%
Staff -- Purchasing, 9/16/2004 2:00:00 AM
The DRAM market grew 19.8% to $6.7 billion in the second quarter, according to market researcher Gartner Inc.
Samsung continues to be the top DRAM supplier with close to $2 billion in revenue, but Hynix Semiconductor moved into the second spot with revenue totaling $1.1 billion.
In the second quarter, the DRAM industry reached its highest revenue total for a quarter in four years. "However, we are entering the height of the DRAM boom, and the industry will be heading into a recession during 2005," predicts Andrew Norwood, principal analyst for Gartner. "While the DRAM suppliers are gaining profits, they are increasing their capital expenditures on new production facilities. These will come online in late 2005 and through 2006, triggering an oversupply-driven downturn," he says.
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