Samsung anticipates a slowdown in DRAM sales

Samsung’s Semiconductor division manager has warned that the DRAM market will witness a difficult third quarter with a situation of excessive stock due to lower computer sales, leading to price falls.

The DRAM memory market certainly picked up steam in the first half of 2010, benefitting from strong computer sales, although they will now have difficulty maintaining these levels as sales indications predict a weakening third quarter.

Forecasts released by Intel have already suggested that the expansion may start to wane in the second half of the year, with analysts already anticipating a break in the impressive growth made by the DRAM market.

Oh-Hyun Kwon, manager of Samsung’s Semiconductor division, confirmed that the third quarter will be less favourable due to a slow down in computer sales, leading to a surplus of DRAM at the beginning of 2011 and a consequential price reduction.

He nevertheless indicated that for the moment, this segment remained solid, taking advantage of the implementation of manufacturing sites that can produce components burned finer than ever before. If computer sales remain down for a prolonged period though, the situation may start to become difficult.


A solid market for NAND memory 
As for NAND Flash memory, things are not so bad with price reductions to be less brutal, with stability planned for the end of the year. The success of mobile products and the emergence of new product categories have maintained strong demand, unlike with DRAM, which is highly dependant on computer sales.

Samsung intends making 35 nm burned DRAM available by the end of the year, while they will provide 20 nm burned NAND from 2011, with increased manufacturing capacity also being planned.