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ADATA expects to profit on DRAM dearth

TAIPEI, Taiwan -- Memory module maker ADATA Technology (威剛) yesterday announced that it is poised to capitalize on expected shortages in the DRAM sector.

According to ADATA Technology, profits for the company may be propelled to new heights by the shortage.

In September last year, a facility operated by South Korean memory module maker Hynix in China burned down in a conflagration. As the destroyed sites housed Hynix's advanced memory fabrication lines, rebuilding time was estimated at one year, said ADATA. As a result, supplies are expected to be tight throughout the sector's supply chain, particularly in the first quarter of 2014.

ADATA also expressed an upbeat outlook on the second quarter, saying that as long as market demand remains consistent, shortages will persist throughout the supply chain. The company is also expecting shipping volumes to surge throughout January, as demand increases in advance of the Chinese New Year holiday.

The company, however, expressed a more reserved outlook on sales prospects for NAND Flash products, saying that average selling prices may face downward pressure. NAND Flash prices will continue to tumble if the sector persists in cannibalistic price competition.

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