DRAM makers announced lower capex for next year

Weak demand in the market combined with increased uncertainty led to DRAM makers, including Micron Technology, Hynix Semiconductor and chip Power Semiconductor Corporation (PSC), which announced the reduction of capital for the next year. At the same time, other players including Samsung Electronics, Elpida Memory, Nanya Technology, Inotera Memories and technology promotion, is also expected to take that step in 2009.

In 2007, the increase in DRAM recently expanded quite aggressive, due to the fact that many names in the industry were driven by ambitions to expand its support for Windows Vista. Last year, Hynix increased capacity during the year, 159 percent, while Inotera followed by 112 percent. Samsung and Elpida of Japan increased by 103 and 86 percent respectively. The operating system was not as successful as hoped, and DRAM makers saw supply. This situation made them to be more careful with their spending for next year.

According to the news site DigiTimes, Micron announced the capital for the fiscal year 2009 to between $ 650 million and 700 million dollars, lower than previously estimated, which was about $ 1-1.3 billion.

Hynix also announced it was reported that the decrease in investment in 2009, the court initially announced $ 491 million to approximately $ 390 million. While the PSC, which had a capital of about $ 606 million in 2008, announced an investment of 50 percent for next year.

In addition to the negative outlook news are also reports that some sources in Taiwan DRAM makers said that the capital budgets for 2009 is mainly for the development of advanced technologies. The same sources said to have said that would have limited funds allocated for the construction or expansion of capacity next year. Industry monitors have also said that during 2009 the number of DRAM makers is expected to reduce the size.