WSTS Forecasts $100bn Semiconductor Market Drop

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Not only is he in an industry experiencing the worst decline in its history, he's exposed to the worst-performing sector in the industry - DRAM. "The price of a 128Mbit DRAM has gone from $15 in September 2000 to $1 in September 2001," he reflects.

Infineon points out that it's operating more efficiently than anyone else with the smallest 128Mbit die size in the industry of 47mm2. Although that's the same as Micron's 128Mbit, the Infineon chip is made on a 0.17µm process while Micron's is made on a more expensive 0.15µm process. The difference comes from Infineon's trench process.

Whether or not there will ever be profitability in the DRAM business probably rest on the fate of Hynix.

According to Infineon's chief operating officer, Dr Andreas von Zitzewitz: "Up to now the psychology in the DRAM business has been 'Let's kill each other'. In Korea we have one company - Samsung - dumping to harm its competitor Hynix, while the Korean government is giving Hynix subsidies to keep it afloat. You've got a country competing against commercial companies which is unfair."

Schumacher believes it can't go on. "Hynix has received a financial bail-out of more than $7bn over the last 11 months," he said.