Dec 26, 2002 (07:12 PM EST)
DRAM Chip Glut Could Lower Prices In 2003

Read the Original Article at InformationWeek

The world is likely to be up to its hips in DRAM chips in 2003, according to a survey by Nikkei Market Access.

The prediction is likely to ruin the holidays for already-plagued manufacturers but could lead to better deals for computer buyers.

Production of DRAM chips, the survey says, will increase up to 66% as major manufacturers ramp up new production lines that pump out more chips per silicon wafer.

Even though the estimate takes into account a robust 10% increase in PC sales--and a hike in the average computer memory from 196 Mbytes to 294 Mbytes--the end of 2003 should see makers holding a two-month inventory. That could be enough to trigger a chip-price crash.

Lower chip prices could result in lower PC prices or PCs with more RAM, or both.