DRAM Production Will be Limited During 2013 to 2014 Says Micron

Micron, one of the top 3 manufacturers and suppliers of dynamic access memory chips claimed that there will still be limited production of memory chips throughout 2013 and 2014, therefore one shouldn’t expect cheap memory kits in the near future.

Mark Durcan, Chief executive of Micron said during a conference call with Financial analysts:

“Supply dynamics in particular appears to be healthy looking forward. We believe the DRAM industry wafer capacity will be down in both 2013 and 2014 and process technology upgrades are being stressed out, thereby reducing supply growth compared to historical trends.”

As a friend pointed out towards Camel Egg’s graph charts which shows the price increase/decrease of a product sold in Newegg since the past few months, one can see that a memory kits such as the Corsair Vengeance Low Profile 1600MHz memory kit that used to cost as low as $32.99 back in November 22, 2012 has been getting a rise ever since, and currently has a tag of $54.99 as of March 10, 2013.

It should be noted that the statement by Micron is very concerning especially after looking at the high demand, production and sales of cheap tablets and smartphones made by numerous Chinese manufacturers; both known and unknown brands.

This happened due to oversupply of memory chips which resulted in a 25% price decline during 2012 and because of it, manufacturers decided to cut production which will immediately increase the prices. It has been said before that consumers have suspected and even accused that DRAM manufacturers are manipulating the prices on the market, but in any case, it doesn’t look like Micron will change their minds as it turns out to be profitable for them.

Source: Xbit Labs