31% Price Decline to Slow DRAM Revenues Growth in 2007: iSuppli

The DRAM market will reach a milestone in 2007 as it achieves the second-highest annual revenue level in its history, at $36.95 billion, although at a much lower growth of 11.3% compared to to the whopping 33.6% jump in 2006, according to iSuppli. DRAM revenue in 2007 will be exceeded only by the $40.8 billion in 1995. 

What is driving the revenue growth slowdown?  The global Average Selling Price(ASP) for DRAM is expected to decline by 31% in 2007, compared to the healthy, but unusual 13% decline in 2006, far below the historical rate of a 30% annual decline. 

DRAM bit production growth was at an ample 52% in 2006, bit production growth expected to reach 65% in 2007 as 7 new 300mm DRAM wafer fabs ramping up production. 

While iSuppli foresees less shifting of production from DRAM to NAND in 2007, allocation of manufacturing between the two memory types will be the major swing factor determining the health of the memory market in 2007.

More at iSuppli.

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