Rocketing DRAM prices have led the world’s third largest DRAM manufacturer, Elpida of Japan, to announce that it will make a profit of $21m for the financial year to the end of March, the first annual profit it has made for three years. In its previous financial year it made a loss of $846m.
DRAM prices have been soaring on the back of renewed PC demand following the uptake of Windows 7 PCs. Already some DRAM types are on allocation. Lead-times for others are stretching out. Prices have risen 14% this year.
Elpida is benefitting from the lower costs of manufacturing from Rexchip the DRAM company in <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” /?>Taiwan which it acquired from Powerchip.
As at the end of last year, Elpida was the third largest DRAM producer with 19% market share, compared to Samsung with 32% share and Hynix on a 22% share. In fourth place was Micron on 12.2% and on fifth place was Nanya with 6% share.