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A-Data predicts DRAM shortages

A-Data predicts DRAM shortages

A-Data's Simon Chen believes that the tech sector is recovering - and predicts demand for DRAM exceeding supply in 2010.

Memory manufacturer A-Data is sounding a warning over limited DRAM supply throughout this year, with demand expected to exceed supply significantly.

As reported over on DigiTimes, the warning comes after many manufacturers slowed down production as a result of the global credit crunch out of fears that the market would become saturated - potentially leaving manufacturers with large quantities of unsold stock devaluing in a warehouse somewhere.

This sort of tactic is a perfectly valid method of limiting liability and reducing costs during a difficult financial period, but can be a dangerous balancing act: make too much of a product, and the market will become saturated; make too little, and demand will exceed supply - exactly what A-Data predicts for this year.

This is good news from the perspective of a DRAM manufacturer: increased demand is indicative that the tech sector is finally climbing its way out of the financial doldrums it has languished in since the credit crunch began.

The comments from A-Data's Simon Chen echo those made late last year by rival manufacturer Elpida's Yukio Sakamoto, who also predicted DRAM supply issues for this year. While the lowered output of most major DRAM manufacturers could well prove a headache for OEMs dependent on large quantities of RAM, consumers shouldn't worry: Chen has stated that he believes DRAM prices "will not rise sharply" despite its increasing scarcity.

A-Data itself has little to worry about from a DRAM scarcity perspective: last year the company enjoyed a 20.1 percent increase in revenue year-on-year, bringing in NT$34.84 billion (£684 million) - revenue which the company plans to use in expanding to developing nations, with offices due to spring up in India and China. An increase in demand - to the point of exceeding supply - will only help drive that revenue still further, and hopefully convince manufacturers that it's time to ramp up production once more.

Are you happy that the market seems to be recovering, or do you think that manufacturers need to hurry up and increase their production in order to avoid unnecessary price hikes and shortages? Share your thoughts over in the forums.

10 Comments

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pizan 7th January 2010, 15:34 Quote
Maybe they got together and planned it out...It wouldn't be the first time.
FeRaL 7th January 2010, 16:27 Quote
Quote:
Originally Posted by pizan
Maybe they got together and planned it out...It wouldn't be the first time.

Yeah, LCDs, cough, cough....
Scootiep 7th January 2010, 16:41 Quote
I wonder what Chen's version of "Won't rise too sharply" is? My guess is it's something along the lines of adding a zero to the end of DRAM prices. As for the rest of us, I think the current price increases have been enough to crunch our build budgets a fair bit. Guess I'll be putting off that SSD HD for another year. Can you say "Monopolistic price fixing?"
/sigh
total zombie 7th January 2010, 16:59 Quote
DRAM Makers are a bit like OPEC.
whiskers 7th January 2010, 17:05 Quote
Yeah, as if the crazy DDR2 prices aren't steep enough...
Aracos 7th January 2010, 17:50 Quote
Quote:
Originally Posted by Scootiep
SSD HD
What's a SDD HD? ^_^

Are we getting told that if we wish to have some RAM in the future we should buy it ASAP? If so I should really get my 4GiB of G.Skill.....
frontline 7th January 2010, 19:23 Quote
hmm, reminds me of when i paid £100 for a 512k RAM upgrade for my Atari ST...
Scootiep 7th January 2010, 20:53 Quote
Quote:
Originally Posted by storm20200
Quote:
Originally Posted by Scootiep
SSD HD
What's a SDD HD? ^_^

Are we getting told that if we wish to have some RAM in the future we should buy it ASAP? If so I should really get my 4GiB of G.Skill.....

Hmmm, it appears my redundancy knows no bounds...
Darkraven 7th January 2010, 22:11 Quote
Shocking news considering we live in a time of such HIGH ethical standards in the business world. Like the upper level executive friend told me one day; I do things on a daily basic that are ethical but not honest. Guess sleeping at night is not a problem if you make enough money.
Anyone believes this guy please contact me, I have several thousand acres of swamp for sale.
Redkachina 9th January 2010, 19:45 Quote
probably more Drams are used to support SSD production = less on RAM. The same ram (4gb ddr2 1066mhz) which I bought for 31quids few months ago now costs more than double..prices are ridiculously inflated everywhere including eastern part of the world..
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