As Taiwan-based DRam module maker TwinMOS Technologies announced it is to close its business, analysts are predicting more misery in the memory market.

TwinMOS was understood to have looked for buyers and tried to reorganise its operational structure. In the end, the continuing downward trend in DRam prices forced the company to close down.

Most of TwinMOS’ employees had already transferred to work for Nand Flash module maker Silicon Power Computer.
With the DRam industry in recession, many more companies could go, commented industry watchers.
Dave Flack, sales director at distributor Catalus, was unsurprised by events. “Many gurus in the market have been predicting that a manufacturer will cease trading,” he said.

The upshot, for resellers, is that ultimately their options will be severely squeezed, he warned.
“Some of the bigger players will be pleased to see this happen and will certainly be doing their part to try to squeeze the smaller players and mop up market share,” said Flack. “There will probably be further consolidation in the industry during 2008 as the global economy puts pressure on all members of the memory supply chain.

“As this consolidation occurs and there is potentially an even smaller number of manufacturing facilities the result could eventually be an upward trend in pricing.”
The news suggests that margins are slim in the PC builder market, and that consumer oriented resellers should concentrate on selling or adding value to Flash memory based products, said Flack.

Though the worldwide average per-megabyte price for Nand flash memory declined by 36 per cent annually in the first quarter, and was followed by a 13 per cent decrease in the second quarter, analyst iSuppli predicts prices will stabilise.

Min-Sun Moon, analyst for OEM semiconductor spending at iSuppli, said: “The pricing stabilisation in mid-2008 will allow global Nand revenue to achieve positive revenue for the year.”