08.10.2001
DRAM players disappoint in July

• Development: Winbond, Powerchip, ProMos (5387) and Vanguard (5347) reported lowest monthly revenue for 2001 in July.

• Analysis: The MoM declines ranged from 3.9%-19.3% with YoY figures presently in the red at negative 70%-80%. Nan Ya Tech is the exception, as contributions to July revenue were generated from dumping non-brand DRAM into the spot market.

• Primasia View: DRAM outlook for 3Q01 remains bleak. We expect DRAM players to experience further losses in the current quarter. However with NEC, Toshiba and Hynix planning to either leave the DRAM business or close fabs, opportunity for recovery looks promising.