Samsung Sees Basic Memory Chip Shortage

TwistedMetal · Mar 15, 2004, 10:39 AM

"Samsung Electronics Co Ltd said on Monday it expected a global shortage of basic memory chips later this year as chip makers switch production to more specialized chips used in cell phones and digital cameras.

Samsung, which is the world's top maker of memory chips, has bet on hefty growth in demand for the basic DRAM (dynamic random access memory) chips used mostly in personal computers, and is lifting investment faster than its rivals.

"Limited DRAM supply helped chip prices stay firm in the first quarter, which is a traditionally slow season, and a chip shortage is expected starting in the second half," Samsung said in a statement.

DRAM chips are the most common type of memory chips and 80 percent are used in personal computers. They are also used to store data in everything from digital cameras, mobile phones and personal digital assistants.

"We expect a shortage of DRAM chips in the second half as PC demand is traditionally higher prior to students returning to school in the fall, and before the Christmas holiday season," a senior official at Samsung told Reuters.

Samsung and chip analysts are turning more bullish for the DRAM outlook.

Double-digit growth in PC demand is expected because of a rebound in corporate spending, but it is happening at the same time as DRAM capacity is being reduced. This is because chip makers are shifting capacity to flash memory chips in a bid to meet explosive demand for camera phones and digital cameras."

Full article: Reuters

Mar 15, 2004, 10:39 AM	#1
TwistedMetal MC John-117 Join Date: Jul 2003 Location: Phoenix, Arizona Posts: 728 Rep Power: 0	Samsung Sees Basic Memory Chip Shortage "Samsung Electronics Co Ltd said on Monday it expected a global shortage of basic memory chips later this year as chip makers switch production to more specialized chips used in cell phones and digital cameras. Samsung, which is the world's top maker of memory chips, has bet on hefty growth in demand for the basic DRAM (dynamic random access memory) chips used mostly in personal computers, and is lifting investment faster than its rivals. "Limited DRAM supply helped chip prices stay firm in the first quarter, which is a traditionally slow season, and a chip shortage is expected starting in the second half," Samsung said in a statement. DRAM chips are the most common type of memory chips and 80 percent are used in personal computers. They are also used to store data in everything from digital cameras, mobile phones and personal digital assistants. "We expect a shortage of DRAM chips in the second half as PC demand is traditionally higher prior to students returning to school in the fall, and before the Christmas holiday season," a senior official at Samsung told Reuters. Samsung and chip analysts are turning more bullish for the DRAM outlook. Double-digit growth in PC demand is expected because of a rebound in corporate spending, but it is happening at the same time as DRAM capacity is being reduced. This is because chip makers are shifting capacity to flash memory chips in a bid to meet explosive demand for camera phones and digital cameras." Full article: Reuters