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Q109 global DRAM capacity cut 32 percent

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CIOL Bureau
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TAIPEI, TAIWAN: According to DRAMeXchange, with the increasing DRAM CAPEX, global DRAM capacity peaked in 2008. The Q208 WW wafer start reached 1.53 million wafers. The Taiwanese DRAM vendors wafer starts also reached 530 K wafers and accounted for 35 percent of the global quantity.

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During 2006 to 2008, among the Taiwanese vendors, Rexchip, as the highest, started 80 K wafers with new 12-inch capacity in Q407. Runner ups are Inotera Fab2 started 60 K wafers, which ran full capacity in Q307, Nanya Fab3 30 K wafers, and Promos Fab4 15 K wafers.

The total capacity was 185 K wafers, and accounted for 12 percent of the total wafer starts of Q208 peak period.

Source: DRAMeXchange

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Afterward, retirement from eight-inch capacity and cutting capacity started in September 2008. In addition, Qimonda applied for bankruptcy protection and went into the corporation reorganization process in January.

Q108 total quarterly wafer starts is estimated to be 1 million wafers including 260 K wafers from the Taiwanese vendors. The total global capacity cut reached 32 percent, and the Taiwanese vendors cut 50 percent . The main reason was that DDR2 1Gb eTT chip price dropped from $1.22 in early October to the low of $ 0.59, only in Q408 alone the price dropped 50 percent.

The price level was lower than the material cost of $0.8- 0.9, and the Taiwanese DRAM vendors kept flowing out cash. DRAM vendors would rather give up production and keep the cash in hand to survive through the harsh winter.

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