DRAM market growth momentum continuing

The good times for semiconductor companies begin in the 3rd quarter of 2009, particularly for DRAM makers it's the return of best times. The demand for DRAM is continuing into the year 2010. Hynix Semiconductor has posted consolidated revenues of 2.82 trillion won (2.54 billion US$) for the first quarter of fiscal year 2010, a slight increase from 2.80 trillion won in the previous quarter. The ASPs and demand both are good.

Hynix stated, quarter-over-quarter, DRAM average selling price and bit shipment climbed by 3% and 6% respectively. NAND Flash average selling price declined by 8% sequentially while bit shipment remained flat.

The operating profit of Hynix has reached 799 billion won with operating margin of 28%, further improved from the previous quarter's 708 billion won.

Will the demand for DRAM last through the complete year of 2010? If we look at the previous DRAM cycles, it's not going to be so, but the market (both supply and demand) might stabilize a bit better compared to previous cycles.