Summary
As 30 X 12" memory fab were built in year 2007 and 14 of 30 were built in Taiwan for which the over supply statement happened with Zero Vista effect. Taiwan government trying to upgrade the advanced/ mainstream processing technology up to 48nm for DRAM and 30nm for NAND for cost down with high yield rate; integrate R&D power between Elpida, Micron and PSC, Inotera, Nanya, ProMos and Windbond. The technology alliance bundled with US$ 3B capitals. Above project is pending for an attractive business proposal. Qimonda went bankruptcy only provide around 10% of market demand which only created 20% price increases; 25% price gap to reach the breakeven price point. The global economic downturn made it worse as a serious storm in the 2nd layer although memory industry needs an M&A/ JV and cost down with advanced technology development as the industry dynamics. As to the supply and demand relationship, expected to reach the balancing point in 2010 with basic Capex.
Analysis
How to reach the breakeven point between supply and demand with memory industry dynamics in the economic storm.
