Decline of 'trench' market share post Micron-Nanya MOU

TAIPEI, TAIWAN: Micron and Nanya recently signed a memorandum of understanding (MOU) on March 3 to explore potential technology sharing, joint technology development and development of a new joint venture. Both parties will jointly focus on the development of sub-50nm technologies.

"DRAM technology, which used to be clearly classified into stack and trench technology, is about to encounter fundamental change amid leading advocators’ technology development and cross partnership," said DRAMeXchange analysts.

Prior to Micron and Nanya’s announcement, Qimonda announced that technology breakthrough with DRAM roadmap to 30nm and feature cell sizes of 4F2. The company will focus on new Buried Wordline technology, 58nm production in 2008 and advance to 46nm in 2H09. While the announcement raised eyebrows among marketers, some believe that the timing of these two announcements implies that Qimonda may foretell some hidden message.

By referring to sales from the mentioned companies, DRAMeXchange believes that market share of stack and trench technology will see structural changes alongside with this type of strengthened ties among involved parties.

As of 2006, the trench camp records a market share of 23 percent. However, as DRAM makers competed over capacity in 2007, the share has decline to 18 percent. In light of the emergence of new partnerships, as well as competition from the stack camp, market share of the trench camp may be erode further.