DRAM industry on the road to recovery, study says

From InfoWorld: Global revenue for DRAM more than doubled during the fourth quarter of 2009 on a year-over-year basis, driven by increased PC shipments and higher average selling prices, research firm iSuppli said on Thursday.

Revenue from worldwide DRAM sales was US$8.5 billion during the fourth quarter, compared to $4.13 billion during the fourth quarter of 2008, said Mike Howard, senior analyst at iSuppli. Revenue during the fourth quarter was up 40 percent sequentially, Howard said.

Last year's fourth quarter was the best quarter in recent memory for DRAM companies, Howard said. The quarter's revenue growth also builds momentum for continued growth during 2010. iSuppli is predicting DRAM revenue to be $31.9 billion this year, compared to revenue of $22.7 billion in 2009.

The worst of the economic downturn has passed and the DRAM industry is set to go back in growth mode, Howard said. Last year was tough for the DRAM industry, with revenue during the first quarter of 2009 the worst on record since 2001, when the dot-com bubble burst.

Taiwanese memory manufacturers reduced DRAM output because of oversupply by the end of 2008, but have since streamlined output, which has led to a steady price increase every quarter. Average selling prices grew sequentially by 16 percent in the fourth quarter.

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