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DRAM oversupply adds salt to wounded market

Lucas Mearian | Jan. 6, 2012
The DRAM market, already suffering from low demand, now faces an alarming rise in inventory that threatens to further sink the industry.

Given the shakiness of the world economy, the DRAM index could continue to rise for a few more quarters, worsening an already bad situation within the space, iSuppli stated.

Leimbach said, however, that there is a "glimmer of hope."

"Should expectations arise that the economy might be headed for improvement -- the belief alone is sufficient -- things could rapidly improve," Leimbach said. "An example of heightened expectations very quickly reversing the downward path of the DRAM market occurred in 2009, when the Inventory Index recovered from a beleaguered 14 weeks to a desirable six weeks in the space of just three quarters."

 

 

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