Suppliers of DRAM (dynamic random access memory) faced more serious problems than previously thought, in servicing loans and financing of investment, as banks have become more limited in their resources because of the global financial crisis, said iSuppli.
Even with the expected intervention of the U. S. government crisis will lead to the Enhanced money because of the lack of liquidity, so the banks are afraid to issue loans, including large enterprises. What has become a serious challenge to capital-market production of dynamic RAM.
At the end of September, iSuppli has reduced short-term assessment of DRAM-chips used in PCs, with a neutral to negative levels. In the industry there is a serious over-supply, weak demand, unexpectedly sharp decline in prices and seasonal factors.
With the exception of industry leader Samsung Electronics Co. , Ltd. All the major manufacturers DRAM-chips for PCs losses. In addition to the weakness of the market and credit deficit cash management has become the most critical problem facing the DRAM. This situation will have an impact on the reduction of investment among DRAM suppliers in early 2009.
Elpida Memory Inc. and Powerchip Semiconductor Corp. announced last month the intention to reduce the production of DRAM to combat oversupply and lower prices.