DRAM Production Cuts Fail to Pull up Market

From PC World: A few DRAM makers cut production last week, hoping that reducing supply might spur a price recovery, but the action is too little, too late, analysts say.

Elpida Memory of Japan and Powerchip Semiconductor of Taiwan both trimmed DRAM production last week as market prices plunged to new all-time lows. But while the actions slowed the pace of DRAM price declines, they didn't stop the fall.

DRAM makers have been in trouble all year due to a chip glut. They built too many new factories last year on hopes that DRAM demand would continue to rise with strong sales of new PCs and Microsoft's Windows Vista OS. But DRAM demand hasn't kept pace with output.

The oversupply has been a bane to suppliers, many of which are losing money on the chips they sell, but a bonus for users.

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