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November 23, 1998

MORE SIGNS OF DRAM RECOVERY FOR 1999

By CBR Staff Writer

The dynamic random access memory (DRAM) industry looks set for an upturn in 1999, according to various industry and analyst reports. The latest forecast of improved fortunes comes from a survey by Nikkei Market Access, which estimates that global DRAM production will increase next year by 54.5% from the predicted production values of $17bn for 1998. However, unlike other reports, such as that produced by Merrill Lynch & Co in September (CI No 3,499), the survey does not see the upturn coming on the back of a sharp increase in demand, rather it estimates that the market has cut out swathes of oversupply. The report posits that the market is likely to stabilize but that manufacturers are unlikely to invest heavily in new technologies and manufacturing processes in 1999.

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