Memory price tracking firm DRAMeXchange predicts that production of dynamic random access memory will increase by 15.6% in 2004 because manufacturers will move from 200mm to 300mm wafers and thinner fabrication technologies. The monitoring firm also says there will be a tangible boost in Flash production this year.

DRAMeXchange, an agency which monitors both spot and contract prices on DRAM, believes that 200mm fabs will output 3.27% more memory chips than last year, while capacity of facilities handling fabrication on 300mm wafers will be expanded to ramp 97.6% more products compared to 2003. DRAMeXchange said all DRAM products of Samsung Electronics – the world’s largest memory producer – would be made using 0.11 micron process starting from Q1 2004, while the other leading memory makers are not far behind, PC Pro web-site notes.

Production of Flash memory is likely to boost tremendously this year too. Given higher profit margin and excellent market acceptance of Flash, memory makers will continue the trend to allocate more capacities for its production.

For instance, Samsung has earmarked 25% of its new 300mm capacity towards NAND Flash production in Q1 2004 up from 20% in the previous quarter. Other memory makers, namely Infineon, Hynix and Power Chip Semiconductor are also switching some of their capacity over to Flash.