Growth in the memory sector in 2006 was twice as fast as that of the overall
semiconductor industry, according to new data from Gartner.
Fuelled by solid growth in DRam, worldwide memory revenue is on pace to grow
21.5 per cent, with revenue surpassing $60.4bn in 2006, according to the analyst
firm.
In 2007, Gartner predicts that the sector will experience slower growth, with
worldwide memory revenue reaching $66.3bn, a 9.8 per cent increase from 2006.
"The memory sector has experienced strong revenue growth in 2006, as
conditions for DRam have continued to improve, with supply tightly controlled by
suppliers and average selling prices holding firm,” said Richard Gordon,
managing vice president at Gartner.
"In contrast, prices for Nand Flash memory have declined further than
expected as competition has intensified, so revenue growth in the Nand sector in
2006 is modest at best, compared with stellar growth for the past four years."
This strong demand for memory meant that vendors such as Infineon
Technologies' Qimonda, Hynix Semiconductor and Elpida Memory, substantially
outperformed the market in 2006 and registered strong revenue growth in Gartner
Dataquest's preliminary market share rankings.
"We expect DRam revenue to keep growing in 2007, although support from the
Nand Flash market will be less of a factor because we expect manufacturers to
convert production capacity back to DRam in the coming quarters," Gordon added.
Worldwide DRam revenue is forecast to reach $33.9bn in 2006, a 34.4 per cent
increase from 2005. DRam revenue is estimated to grow 15 per cent in 2007 to
$39bn. In 2008, this segment will peak, and the market is expected to decline in
2009.
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