Sunday August 07, 2016

DRAM Industry Might Face Upheaval

Micron is in trouble and is fending off hostile takeovers from Chinese firms due to their losses and declining stock prices. Micron is one of the big three DRAM manufacturers but is falling behind due to processing technology that is leading to higher production costs and lower profitability.

Samsung Electronics, which has the most advanced technology in fine process, is mass producing 18-nanometer (nm) DRAM chips. SK Hynix is mass producing DRAM products using its 21nm technology, whereas Micron has 20nm technology. The smaller the line width, the more dense circuits are, which leads to more production. The more advanced technology will lower production costs and improve profitability. The semiconductor industry sources say, "As the price of DRAM products has continuously dropped, the soundness of each firm has been shown." It means that Micron doesn’t have the competitiveness to make profits with the current DRAM prices.