Despite the latest cut in production announced by Hynix Semiconductor, more reductions are needed to help the global DRAM industry recover from its current slump, according to DRAMeXchange.
Hynix's reduction plans together with the cuts being carried out by Power Semiconductor International (PSI) and Elpida Memory will reduce global DRAM production by 5-6%, DRAMeXchange estimated.
Hynix said last week that it will retire its 200mm (8-inch) wafer fabrication plants earlier than planned in order to improve its financial stability and focus on profitability.
Hynix has stopped production at three 8-inch fabs, M9 in Cheongju, Korea, E1 in Eugene, Oregon, and HC1 in Wuxi, China. In addition, plant M7 in Icheon, Korea will also be closed at the end of this month, the company said.
Although the production cuts initiated by PSI, Elpida and Hynix will help balance of the supply and demand of memory chips, the extent of the reductions is still not sufficient enough to help stabilize sagging chip prices because demand from the terminal-end has also been declining, the memory-trading firm observed.
The industry as whole needs to see further cuts of 45,000-60,000 wafers before a recovery is likely, DRAMeXchange believes.
Article translated by Steve Shen
