Industry sources told DigiTimes that Elpida has decided to cut its DRAM production by 20 percent to allow prices to bounce back to healthier levels:
With 2Gb DDR3 prices having tumbled to near cost, Elpida Memory reportedly has decided to scale back its output to allow prices to bounce back. The Japan-based DRAM chipmaker plans a production cut of about 20% for the third quarter, according to industry sources.
Rexchip Electronics, Elpida's production subsidiary in Taiwan, has also built up its "wafer bank" inventory level as a result of slowing demand for PCs, the sources revealed. These excess chips will not be packaged and released to the market as Elpida intends to control output, the sources learned.
When asked whether fellow Taiwan-based DRAM producers would follow suit, Powerchip Technology said it is considering the possibility whereas Nanya Technology and Inotera Memories claimed they have no plans to do so.