Micron, Elpida and Hynix cause price drop through overproduction

According to industry sources, the reason for the dropping DRAM prices is that several of the major manufacturers have been overproducing circuits. It’s mainly Micron, Elpida and Hynix that are accused of overproducing circuits and have put themselves between a rock and a huge stack of chips. All three have previously been using parts of their plants for making other circuits, among others NAND flash and CMOS sensors. But when switching back to (more or less) solely DRAM manufacturing, the supply increased significantly and according to the same sources we can expect the global supply to increase by 20-30% during the second quarter of 2007. As a consumer this is the best of times to buy RAM, but the manufacturers are far from as excited as we are. However, the balance is expected to re-establish during the second half of 2007.