Worldwide DRAM revenue down 20%

According to the firm, the decline was as a result of a 40% drop in DRAM contract price, despite a 16% quarter on quarter DRAM output increase in Q4. DRAMeXchange says Q4 DRAM contract price declined as the production technology migrated to 50nm and 40nm, enabling a 16% increase in output. As a result and with a limited content growth and relatively poor sale, pc OEMs can't consume large DRAM inventories. Other than Korean and American DRAM vendors, the rest of worldwide DRAM vendors reported losses, impacted by decreasing Q4 prices. DRAMeXchange suggests that vendors are becoming more conservative in capital expenditure. 2011 DRAM capital expenditure dropped by 43% year over year from previously $12bn to $6.8bn and vendors look set to adjust their product mix and decreasing commodity DRAM output.