RAM chip industry tanking fast

nikimcbee · 10-16-08, 08:13 PM

Competition is good, but this case it is killing the industry.

October 10, 2008 10:20 AM PDT
Chip forecasts head south

Posted by Brooke Crothers Post a comment Along with the economy, chip forecasts are heading south.
Following an outlook about weak chip industry capital spending from market researcher Gartner on Wednesday, iSuppli cut its 2008 IC revenue forecast to 3.5 percent from 4 percent on Thursday.

The memory chip industry is the canary in the coal mine. At least two memory chip manufacturers are on life support right now. Hynix, the world's second largest maker of memory, is trying to scare up cash by seeking buyers for a 36 percent stake in the company. The other ailing memory maker is Qimonda AG. Rumors have been rife that the manufacturing assets of the loss-ridden company will be snapped up.
Hynix and Qimonda won't get any help from the market in the coming months. Gartner said that the oversupply in memory, combined with a slowing consumer market, "gives little hope for an upside until 2010." Semiconductor industry capital spending is forecast to decline 25.7 percent in 2008--this would be the steepest decline since 2002--and another 12.8 percent in 2009, according to the market researcher.
The iSuppli report isn't any brighter. The outlook for memory revenue has been revised downward by 5.8 percentage points for 2008. iSuppli is citing the "credit crisis" as adversely affecting demand.
And let's not forget the Micron surprise on Thursday. The largest maker of memory chips in the U.S. said it would reduce its workforce 15 percent during the next two years. "Selling prices for NAND flash memory (are) significantly below manufacturing costs," Micron said in a statement.
SanDisk--the largest supplier of retail flash memory products--has problems of its own. It has become a buyout target as its stock price has steadily declined over the last 12 months.
Click here for ongoing coverage from CNET News, 'Tough times for tech'

Zachstar · 10-17-08, 12:35 AM

It was bound to happen sooner or later.

It was not THAT long ago when a meg of memory was a BIG deal! Now with things much more complicated.. The costs must be skyrocketing with the lack of ability to charge high prices because of weakening economy.

nikimcbee · 10-18-08, 04:20 PM

Quote:

Originally Posted by Zachstar

It was bound to happen sooner or later.

It was not THAT long ago when a meg of memory was a BIG deal! Now with things much more complicated.. The costs must be skyrocketing with the lack of ability to charge high prices because of weakening economy.

I don't think it has anything to do with the economy. there are just too many companies making the stuff. It's great for the consumer, bad for the industry. The market is totally flooded with chips, driving the price down.

It's a screwy situation.

Wolfehunter · 10-18-08, 04:35 PM

Which will bring up prices for computer stuff in the near future. Best time is now to upgrade after that it will be quite pricy.

Hylander_1314 · 10-18-08, 08:38 PM

I think a big issue that people have figured out, is to wait about a year after the latest greatest inventions come out, as the price tanks in a year. Look at the Nvidia 8800 GTS 512 video card. It was 329.99 US 8 months ago, and can be had for 129.99 US from Newegg, and add a 30 dollar rebate to it, and it's dirt cheap. I also think the technology is developing so quickly now, that the companies can't turn a buck like they did before. The latest greatest thing is out in what, something like 9 months? It's about half of what it was 15 years ago.

FIREWALL · 11-25-08, 01:30 PM

Cheapest upgrade you can do to upgrade your Rig.

10-16-08, 08:13 PM	#1
nikimcbee Fleet Admiral Join Date: Jul 2003 Location: Patroling the Slot. Posts: 17,952 Downloads: 90 Uploads: 0	RAM chip industry tanking fast Competition is good, but this case it is killing the industry. October 10, 2008 10:20 AM PDT Chip forecasts head south Posted by Brooke Crothers Post a comment Along with the economy, chip forecasts are heading south. Following an outlook about weak chip industry capital spending from market researcher Gartner on Wednesday, iSuppli cut its 2008 IC revenue forecast to 3.5 percent from 4 percent on Thursday. The memory chip industry is the canary in the coal mine. At least two memory chip manufacturers are on life support right now. Hynix, the world's second largest maker of memory, is trying to scare up cash by seeking buyers for a 36 percent stake in the company. The other ailing memory maker is Qimonda AG. Rumors have been rife that the manufacturing assets of the loss-ridden company will be snapped up. Hynix and Qimonda won't get any help from the market in the coming months. Gartner said that the oversupply in memory, combined with a slowing consumer market, "gives little hope for an upside until 2010." Semiconductor industry capital spending is forecast to decline 25.7 percent in 2008--this would be the steepest decline since 2002--and another 12.8 percent in 2009, according to the market researcher. The iSuppli report isn't any brighter. The outlook for memory revenue has been revised downward by 5.8 percentage points for 2008. iSuppli is citing the "credit crisis" as adversely affecting demand. And let's not forget the Micron surprise on Thursday. The largest maker of memory chips in the U.S. said it would reduce its workforce 15 percent during the next two years. "Selling prices for NAND flash memory (are) significantly below manufacturing costs," Micron said in a statement. SanDisk--the largest supplier of retail flash memory products--has problems of its own. It has become a buyout target as its stock price has steadily declined over the last 12 months. Click here for ongoing coverage from CNET News, 'Tough times for tech' __________________

10-17-08, 12:35 AM	#2
Zachstar Sea Lord Join Date: Feb 2005 Location: Shreveport, Louisiana Posts: 1,956 Downloads: 13 Uploads: 0	It was bound to happen sooner or later. It was not THAT long ago when a meg of memory was a BIG deal! Now with things much more complicated.. The costs must be skyrocketing with the lack of ability to charge high prices because of weakening economy. __________________

10-18-08, 04:35 PM	#4
Wolfehunter Crusty Capt. Join Date: Sep 2007 Posts: 2,752 Downloads: 40 Uploads: 25	Which will bring up prices for computer stuff in the near future. Best time is now to upgrade after that it will be quite pricy. __________________

10-18-08, 08:38 PM	#5
Hylander_1314 Sea Lord Join Date: May 2006 Location: 5 Miles Inland West Of Lake Huron Posts: 1,936 Downloads: 139 Uploads: 0	I think a big issue that people have figured out, is to wait about a year after the latest greatest inventions come out, as the price tanks in a year. Look at the Nvidia 8800 GTS 512 video card. It was 329.99 US 8 months ago, and can be had for 129.99 US from Newegg, and add a 30 dollar rebate to it, and it's dirt cheap. I also think the technology is developing so quickly now, that the companies can't turn a buck like they did before. The latest greatest thing is out in what, something like 9 months? It's about half of what it was 15 years ago. __________________ A legislative act contrary to the Constitution is not law. -John Marshall Chief Justice of the Supreme Court ---------------------

11-25-08, 01:30 PM	#6
FIREWALL Eternal Patrol Join Date: Mar 2006 Location: CATALINA IS. SO . CAL USA Posts: 10,108 Downloads: 511 Uploads: 0	Cheapest upgrade you can do to upgrade your Rig. __________________ RIP FIREWALL I Play GWX. Silent Hunter Who ???