Samsung Says Computer Memory Shortage to Continue

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  05 May 2004
Samsung Says Computer Memory Shortage to Continue

"Samsung Electronics Co Ltd, the world's top memory chip maker, said on Wednesday it expected a shortage of the chips throughout 2004, with inventories at low levels and supply constrained. "

"...The supply limit is causing stable DRAM pricing in a slow season," Samsung said in a copy of a presentation for a global investor conference organized by Samsung Securities, which was obtained by Reuters.

Prices of dynamic random access memory (DRAM) chips, used mainly for computer memory, have soared since the start of the year on tight supply as chip makers switch to making flash memory and hit problems introducing new production technology.

The chip shortage was a key reason for Samsung's near tripling of profits in the first quarter, along with buoyant handsets and flat-screen businesses.

"A DRAM shortage will prevail in 2004. The market inventory is low and supply is constrained," the presentation said.


The price of industry standard 256-megabit chips rose 43 percent in the first three months of the year to $5.29, according to chip broker

"Contract price has increased for four months including May," Samsung said in the document.

Samsung charges a 10-20 percent premium for its chips over rivals because of its higher quality and long-term contracts with a broad customer base, analysts say. "


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  05 May 2004
Does it say anywhere why there is a shortage, other than that they have "problems introducing new production technology"?

OR are they willingly producing less rams to mainting good pricing and profit?
  05 May 2004
RAM shortages are always cyclical. Other than the cutting edge high speed memory DRAM chips are easy to product. What happens though is there are too many produced and a RAM glut happens...prices bottom out. So they toggle production to ensure that a profit can be made.

Prices will rise a bit and then fall as competition mounts again. Seen it happen too many times to count.
  01 January 2006
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