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Wednesday, 16 May 2012 10:53

DRAM market set to improve

Written by Nick Farrell



IHS claims


Beancounters working for IHS say that the market for DRAM is expected to partially reverse the drastic losses it incurred in 2011 and make a bit of money this year.

Part of the reason is because supply and demand will stablise following the exit of major manufacturer Elpida. The beancounters predict that the market will reach $30.6 billion, up 3.3 percent from $29.6 billion in 2011. The IHS report said that while it is small, the revenue expansion for 2012 is a welcome development given the stunning 25 percent contraction last year.

The overall picture will continue to brighten during the next few years, with DRAM revenue exceeding $30 billion each year for the next five years and reaching $40.2 billion in 2016, which was an unprecedented run scaling unparalleled heights for the market.

Report author Mike Howard said that the turnaround comes as somewhat of a surprise, especially as the challenges of 2011 appeared to point to a calamitous 2012.

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