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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (751)	3/5/2002 6:09:35 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Rising prices to drive up DRAM sales by 55% in 2002, says new forecast Semiconductor Business News (03/05/02 16:58 p.m. EST) EL SEGUNDO, Calif. -- Propelled by a strong rebound in average selling prices, the DRAM market is now expected to increase by about 55% to more than $17.3 billion in 2002 compared to sales in last year's downturn, said iSuppli Corp., which revised its forecast today from a previous projection of flat revenues. Average selling prices for 128-megabit synchronous DRAMs bought by major PC manufacturers have climbed to more than $4.50 this month, nearly triple the ASP in November, said the market research firm. In just the month of December, aggregate ASPs rose more than 20% for most products and prices continued to increase through January and February at remarkable rates, said iSuppli in El Segundo. "Consolidation within the DRAM business over the past several months allowed suppliers to rein in excess production capacity very rapidly to better match the continuing uncertain demand patterns," said senior analyst Nam Hyung Kim, who tracks memories at iSuppli. "Product mix had a lot to do with this increase in that suppliers shift significant factory capacity into the production of double-data rate DRAM (DDR DRAM) in anticipation of the introduction of new highly graphic integrated chip set, 845G," Kim said. "With these Intel chip sets yet to hit the market, OEMs have not switched to the faster and more cost effective DDR parts and a temporary shortage is beginning to develop in the SDRAM marketplace. "We expect this supply and demand balance to continue throughout the remainder of the year, with ASPs rising slightly and spot shortages continually developing due to product production mix variations," said the analyst. PC manufacturers will remain the market driver for DRAM revenues for some years to come, according to Kim. "Windows XP is driving memory content in the average system from less than 170 Mbytes to more than 220 Mbytes right now, and the white box and module makers are enjoying the XP wave with record demand for memory upgrades spurring DRAM consumption," Kim added.