iSuppli: DRAM shortage likely coming
According to research firm iSuppli, the DRAM market could see a significant supply shortage in the Q3 2010 due to “limited manufacturing equipment availability” and other challenges.
Says the company (via Barrons):
“A commodity profoundly susceptible to the variable dynamics of supply and demand, DRAM is expected to ship 15.9 million 1Gbit-equivalent units in 2010, up 48.6% from 10.7 million units last year.”
“Most of the year’s growth is forecasted to occur in the second half of the year, with each of the final two quarters of 2010 expected to post sequential bit growth of approximately 11%. In comparison, bit growth in the first two quarters of 2010 topped out at far below the 10% mark. Such high levels of growth, concentrated in a six-month period, will strain the production capabilities of DRAM suppliers.”
Mike Howard, senior analyst for DRAM at iSuppli also adds that two major factors should lead the market into a supply shortage, with the first being limited tooling equipment, especially from ASML Holding. The second is the challenges for manufacturers migrating to below 50 nm.
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