JohnJ80 Offline Dedicated FM Upload & Sell: Off
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Zander Alberts wrote:
So what has been the influence for flash to get so cheap right now? Is it the interest in UDMA or 
It's complicated but it is basically that these factories (fabs) get built in $5B chunks so capacity is added in massive amounts which drives prices down. On top of that, you have about 10 guys all who think they will get 20% market share - that math obviously doesn't work. The other impact is the economy - the drop there plus that it takes a couple of months to turn the fab's output back makes for big surplus and hence low cost.
That all said, the growth rate on memory is always high (bit growth rate runs 40 to 70% annually) so it doesn't take all that long to eat up the excess capacity. Look for the capacity situation to start turning around mid 2009 and probably be into a big shortage situation in 2010.
oh, and by the way, I can assure you that there is virtually no one getting bonuses in the IC industry this year. In point of fact unemployment is terrible, several suppliers are on the verge of bankruptcy - there is big time blood in the streets.
J.
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