Hynix Predicts Rebound of DRAM Market

Hynix, the world's second-largest DRAM maker, hopes that prices for DRAM will continue to rise and that the industry will be able to recover throughout the second half of the year.

In an article posted by MarketWatch, Hynix CEO O.C. Kwon was quoted saying that "DRAM prices have largely bottomed out recently and are now in recovery."

He expects prices to improve in the second half of the year as there will not be as much DRAM supply due to the bankruptcy of Elpida as well as the fact that DRAM makers have not made any manufacturing investments to bring supply and demand in a balance. IHS recently said that Samsung controls about 43.2 percent of the DRAM market, followed by Hynix with 23.7 percent and Micron with 12 percent.

Elpida was most recently listed with about 11.9 percent market share, a large part of which may transition to other makers. IHS said that smaller makers especially will benefit as large DRAM purchasers already buy from the three leading suppliers. However, Elpida held about 25 percent of the mobile DRAM market and there will be a feeding frenzy among all suppliers to attract those orders.