SAN FRANCISCO—The global DRAM industry is expected to partially reverse massive losses incurred in 2011, with projected growth of more than 3 percent this year, according to market research firm IHS iSuppli.
IHS (El Segundo, Calif.) said the projected growth is anticipated because of the exit of Japan's Elpida Memory Inc., which filed for bankruptcy protection in February. Following an auction process, U.S. memory chip vendor Micron Technology Inc. is now in discussions with Elpida's trustees about acquiring the company's assets. Though Micron has reportedly promised to keep at least one Elpida fab open if it acquires the firm, many believe that Micron may shutter some of Elpida's capacity or convert it to NAND flash production.
Even with the final outcome of Elpida’s bankruptcy uncertain and the disposition of its assets still in negotiation, the rest of the industry is expected to benefit from Elpida’s exit, with the market lifting on signs of supply rebalance, IHS said.
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