"South Korean companies are adding DRAM manufacturing capacity, but this is contributing significantly to the collapse in pricing for the memory this year," Lidow noted. "These price declines will cause South Korean manufacturers to reduce DRAM output growth next year. Meanwhile, Taiwanese/Chinese suppliers will increase their output, and may surpass the South Korean manufacturers in DRAM manufacturing capacity by 2010."
"The DRAM market has grown because of added manufacturing capacity, but this has required DRAM suppliers to drastically cut prices in order to sell their output," Lidow said. "Prices now are below cash production costs for many suppliers. Annual DRAM revenue growth peaked in March, and is in the midst of a deceleration that will continue until March 2008."
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