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May 28, 2017

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Adata optimistic on DRAM market

Chen Li-pai, chairman of memory module maker Adata Technology, yesterday said he holds an optimistic view for the dynamic random access memory (DRAM) market but a neutral view for the NAND Flash market.

Chen said during an interview yesterday that with Japan-based Elpida withdrawing from the market, the DRAM industry will be divided among three powerhouses. Suppliers will exercise more restraint to prevent a glut in the market. Citing the example of Samsung, he said the electronic giant has changed part of its standard DRAM capacity for the production of mobile memory products.

He predicted that in the second half, DRAM contract prices will go on an upward trend, while spot prices will also experience a noticeable increase after July. These positive developments will combine to pull DRAM manufacturers from the bottom.

As for NAND Flash, Chen holds a more conservative view, saying he is neutral about the industry in the second half.

"The market for NAND Flash is still very competitive. Although demands from solid-state drive (SSD) operators are expected to increase, supplies of SSD control chips are still unstable. As a result a sharp growth of the SSD market is unlikely," he said.

He said an oversupply situation in the NAND Flash market is expected to last, until after Apple refills its inventories.

Adata yesterday closed at NT$34.5, down 6.12 percent from the previous session. The TAIEX fell 211.43 points to 6,894.66.

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