Hynix sources confirm DRAM production cuts

Effect on jobs not yet known

Memory maker Hynix will start reducing its DRAM output at the end of this month in a desperate bid to curb the crashing price of memory chips.

So says DigiTimes, citing "top-level sources". The company has been rumoured to be considering production cuts for some weeks now.

At this stage it's not known whether jobs will be eliminated at the company's memory plants - it has 13 of them - or which production lines will be turned off, but the betting has to be on the older facilities.

The news follows a report from Korean analyst Meritz Securities that the DRAM market is going to get a lot worse before it gets better. Meritz also believes that the major memory producers will soon begin to cut back on production in a bid to prevent the downward spiral of DRAM prices.

It's not known how much production capacity Hynix will cut, but DigiTimes cites "industry observers" who put the figure at 20 per cent of the company's monthly output. ®

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DigiTimes: Hynix to cut DRAM production at the end of July