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Enterprises In South Korea Usher New Opportunities

The struggling memory chip market due to oversupply and price collapse shows signs of recovery. Because the Japanese, Taiwanese companies have cut production capacity, and demand for memory chips used in smart phones, tablet PCs increase quickly. Accordingly,Samsung Electronics and Hynix Semiconductor ranked first and second in the industry are expected to become the biggest beneficiary.According to report from chip dedicated website ,DRAMeXchange,on June 6th 1 gigabit DRAM capacity in the international spot market is maken a deal at $ 0.7. The price of the product fell to $ 0.5 in early November last year, but at the end of the year demand increases, prices also rebounded.The most important reason rebound in memory chip prices is that the world's major manufacturers have reduced production. The world's third largest DRAM maker, Elpida of Japan decreased production by 20% at the third quarter of last year, because at that time, an operating loss of Elpida is up to 640 billion won, performance continued to deteriorate. Elpida applies for $ 500 million as financial assistance from the customers in the U.S,China and others this year. The world's fifth-largest DRAM manufacturer, Taiwan South Asia began to yield reduced by 10% from last September. The world's sixth largest producer ,Taiwan Powerchip Semiconductor Corp. also cut 50% in production in last October.Instead, Samsung Electronics and Hynix overwhelm competitors with excellent cost competitiveness.If Samsung and Hynix's market share are added together, the DRAM market share of Korean companies is as much as 65%. As foreign companies cut production, the share will be further enhanced. Hyundai Securities said: "after the economic crisisin Europe comes to an end, Korean companies will be the biggest beneficiaries."

    
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