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Due to uncertainties in the global economic conditions, the DRAM market has seen oversupply for the first half of 2015. The industry are having difficulties consuming PC DRAM capacity because the notebook shipments have been weak. As a result, the contract prices for PC DRAM have been falling.
The IC sector is spurred by demands related to IoT businesses and 4G LTE technologies, but it is also dragged down by the below-expectation sales of PCs and mobile devices. On the whole, the sector’s revenue performance has been slightly disappointing so far this year.
Traditional memory module manufacturers are currently facing challenges in shipping memory cards and flash drives, according to the latest analysis by DRAMeXchange, a division of TrendForce. These products, which are major sources of revenue for these companies, are struggling the market due to the rise of cloud storage services and the increasing emphasis on high-density flash storage design that is driven by Apple’s iPhones.
The latest DRAM module maker ranking by DRAMeXchange, a division of TrendForce, reports that the gross sales of the global DRAM module market for 2014 was US$8.8 billion. This amount represented a 21% increase over the 2013 gross sales of US$7.3 billion. This dramatic growth was attributed to the stabilization of prices for PC DRAM and the rise of contract transactions relative to spot trades. The top five module manufacturers remained dominant, accounting for 81% of the 2014 gross sales.
On October 14, 2014, China’s Ministry of Industry and Information Technology (MIIT) announced the establishment of the National Integrated Circuitry Industry Investment Fund. This announcement signaled China’s intent to create a competitive domestic semiconductor sector, starting with the DRAM industry.
