03.26.2001
Local MB makers turn bullish on DDR MB

• Asustek (2357 'Hua Shuo') forecasts DDR MB to grow to 35% of total MB shipment in 2001; the company says the current proportion is well under 10%. Micro-Star International (2377 'Wei Xin') also expects DDR MB's share of total MB shipment to reach 35% in 2H01, while Chaintech (2425 'Cheng Qi'), a second-tier MB maker, puts the figure at 30-35%.

• These forecasts on DDR are more bullish compared to less optimistic sentiment earlier in the year. Our industry sources point out that DDR has proven superior to comparable SDRAM for use in games and 3D-graphic applications.

• Micron Technology (US) recently announced its DDR promotion plan will start in April, pricing its DDR module at US$50, 15-20% lower than VIA's (2388 'Wei Sheng') and Nan Ya Technology's (2408 'Nan Ya') bundling deals. Consequently, local MB makers are now more cautious in committing to the VIA/Nan Ya offers, fearing sharp price declines led by Micron. --We remain cautious on the DDR upturn, widely expected to arrive in 2H01. Meanwhile, as there are few technology barriers to entry for SDRAM makers moving into DDR, a price war is inevitable once demand takes off.

LindaLiu@Primasia.com +886-[0]2-2547-8867