Troubled Korean memory makers Hynix Semiconductor does not give up and continues to set up its future plans. Yesterday the company announced that its 512Mb memory modules had been validated by Intel, in addition, the company said it will boost the PC3200 output gradually.

Hynix projects a continued surge in demand for PC3200 memory products throughout this year as the PC industry quickly adopts Intel’s Springdale and Canterwood chipsets supporting dual-channel PC3200 memory. According to Farhad Tabrizi, Vice President of Worldwide Marketing, Hynix expects PC3200 to represent more than 35% of the overall DDR market by end of 2003 and Hynix is taking additional steps to expand its production capacity of PC3200 to 90% from its initial target of 60% by year-end. Currently, DDR products account for more than 80% of the company’s total DRAM production.

Hynix is definitely not alone in its projections about PC3200 market growth. I believe other memory makers will also increase PC3200 output in order to meet the market demand and in an attempt to rise their ASPs and margins at some point. It is quite natural that once market demand is fulfilled, prices on PC3200 memory will slump.

Nevertheless, in case Hynix will become unable to sell its products, its PC3200 capacity would not be interesting to anyone.