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Hynix reports record earnings, forecasts price drop on DRAM
Written by Gizmo   
Wednesday, 14 February 2007 20:23
Hynix reported record 4th quarter earnings , mostly due to the sales of memory related to Windows Vista, but Senior Vice President Kwon Oh Chul told analysts that prices will decline in 2007.

He indicated that DRAM prices could drop by as much as 30% this year.  Prices were pushed up by 63% last year in anticipation of the release of Microsoft's latest memory guzzler, Windows Vista.  However, memory prices have already dropped by an average 16% this year with 512 mbit 533 MHz DRAM seeing a drop of 20%.

Nanya indicated last week that they expect to see pricing pressure on DRAMs this quarter also.  Further, DRAM demand is expect to grow about 10% this year, down from the 26% growth of 2006.  Never-the-less, Hynix plans to spend roughly USD 1.1 Billion to expand production capacity this quarter.

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