DigiTimes editor, March 25, 2004: In the week following publication of this article, Infineon contacted DigiTimes to clarify several points. The article below has been updated to reflect those points.
According to the company, Infineon Technologies began using its 0.11-micron process for volume production in 2003 and 30% of its 12-inch wafer starts were using the new process by year-end. In 2004, the company expects to have converted 75% of 12-inch wafer starts to the 0.11-micron process. Following a Merrill Lynch conference in Taiwan on March 18, Kin-wah Loh, president and managing director of Infineon APAC, said to reporters that most of Infineon’s 12-inch production would use the 0.11-micron process by the fourth quarter of 2004 or the first quarter of 2005.
Industry observers originally projected a faster 0.11-micron-based ramp, picking up in the second quarter. However, rumors about a slower-than-expected ramp spread and the observers speculated that the situation could affect DRAM supply for the second half of this year.
Loh also said that DRAM contract and spot prices for the second quarter may not follow the traditional seasonal pattern. He expects prices to increase steadily given that supply will drop amid the slow 0.11-micron ramp and its competitors’ capacity reallocation to flash memory.
Article translated by Jack Lu and edited by Jack Lu
