DRAM sales to fall faster after dismal Q4-iSuppli

SEOUL, Feb 10 - Global DRAM revenue is seen falling by a wider-than-expected 15 percent this year as memory chip makers were hit by heavy losses in the last quarter and cut supplies radically, research firm iSuppli said.

Makers of dynamic random access memory (DRAM) chips, used mainly in personal computers, saw nearly zero growth in combined fourth quarter shipments from the third quarter. Average chip prices plunged by 38 percent amid dwindling consumer demand, iSuppli said in a note dated Monday.

It reduced its 2009 DRAM revenue forecast to $20 billion, down 15 percent from 2008. Only a month ago it forecast this year's DRAM sales would shrink 4 percent.

"The downturn is impacting the global DRAM business in an increasingly broad fashion," iSuppli said. It estimated DRAM industry's total operating losses reached $2.6 billion in the fourth quarter and $7 billion in 2008.

Taiwan's DRAM firms suffered the most in the fourth quarter, with the island's top supplier, Powerchip Semiconductor <5346.TWO>, posting a 74.5 percent revenue drop from the third quarter. Local rivals Nanya Technology <2408.TW> and ProMOS <5387.TWO> also saw sales falling by more than 50 percent.

Germany's Qimonda <QMNDQ.PK>, which last month filed for insolvency, reported a 40 percent decline in fourth-quarter sales. Even the sector leader Samsung Electronics Co Ltd <005930.KS> of South Korea logged a 38 percent sales fall.

Micron Technology <MU.N> of the United States outperformed, limiting sales fall at 16.4 percent and gaining market share.

Top player Samsung had a 30 percent share in DRAM market in October-December, followed by home rival Hynix Semiconductor Inc <000660.KS> with 20.8 percent and Japan's Elpida Memory <6665.T> with 15.5 percent.

Micron had 13.8 percent of the market, with Qimonda trailing with 9.4 percent.