Feeds

Win2000 to fuel Taiwan memory growth

And Rambus won't get in the way

  • alert
  • submit to reddit

Boost IT visibility and business value

A bright future is being predicted for Taiwan's DRAM makers as the industry emerges from a three year slump. "Next year will be very good for the DRAM business, simply because demand will be much higher than supply," said Hander Chang, assistant vice president and spokesman for Winbond Electronics. Winbond, Taiwan's largest DRAM maker, holds roughly 5 per cent of the global market. DRAM memory chips are used in all personal computers, and in many other electronic devices. Taiwan currently holds around 12 per cent of the worldwide market, which was worth over US$16 billion this year. In 2000, with global market value expected to exceed US$20 billion, Taiwan's share will rise above 20 per cent, analysts say. "I expect the DRAM industry to see significant growth for the next three years," commented industry analyst Eric Wang of ABN Amro, Taipei. "All the producers will benefit from an upturn in the cycle. In the short term, however, in the next three months I see a lot of pressure on the price." "DRAM is supply driven industry and a lot of new supply will come into the market in the next three months," he explained, "However, the price will come down but not collapse." Wang believes that manufacturers will hold extra inventory during the next few months, and will use it to even out dramatic price swings on the spot market. Some analysts predict that ongoing stockpiling of memory chips by companies concerned about possible Y2K problems could lead to a slump in orders in the first quarter, traditionally a period of low demand. Winbond's Chang sees potential problems later in the year, however. "The end of the second quarter, maybe April or May might be a little bit slow," he said, "but after that, we think there will be high demand." The release of Microsoft's Windows 2000 operating system, expected early in 2000, will help drive DRAM sales. "Windows 2000 will have positive influence," said Chang, "you need more DRAM to support all its features." Microsoft will probably recommend a minimum of 128 Megabytes of memory for PCs which use Windows 2000. DRAM Production is dominated by Samsung and Hyundai of Korea, and Micron Technologies of the US. Between them, these three companies produce about 70 per cent of global output. Taiwan's DRAM makers will benefit next year because, unlike Samsung and others, most have steered clear of the troubled Rambus memory format. Rambus, long touted by US chip giant, Intel, as the future memory standard, has been delayed by technical problems, and is not expected to become dominant before 2001. The global memory chip market will grow 33.5 per cent next year, according to Semico, a US research organization. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.