Business DRAM price to soar 40% this year

Business DRAM price to soar 40% this year

2013/08/07

DRAM ASP will soar 40% this year, says IC Insights, as the industry’s capex-to-sales ratio falls to an all-time low of 11.9%.

The 11.9% capex-to-sales ratio this year contrasts dramatically with the
2004-2008 average ratio of 42% and the 2009-2013 average ratio of 21.5%.

The catalyst for this is, of course, the takeover of Elpida by Micron which leaves only three men standing in the DRAM game – Samsung, Micron and Hynix.

2013 DRAM capex will be $4 billion – level-pegging with the capex of the recession-plagued year 2009.

By contrast the DRAM market will be worth $33.7 billion.

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