The chairman of A-Data Technology, one of the world’s largest producers of memory modules, said that tight supply of dynamic random access memory (DRAM) chips would persist in 2010 due to various reasons, among which there is inconsistent supply because of low investment into new production capacities in the recent years.

“Supply of DRAM chips will remain mostly tight in 2010,” said Simon Chen, chairman of memory module maker A-Data Technology, reports DigiTimes web-site.

With major producers restraining their capacity expansion over the past two years, supply will not be able to catch up with demand for most of the time in 2010, added the head of the memory module house.

According to DRAMeXchange, a market tracking company, 2010 PC shipments year-on-year growth will be up to 13%. Desktop PCs will merely grow 0.6% annually to 120 million, notebook market is projected to grow 22.5% year-over-year to 160 million units, whereas shipments of netbooks will grow 22% to 35 million units as well. The increase of demand towards personal computers will result in the raise of demand towards memory, which, according to DRAMeXchange, will cause shortages in supply, increasing prices and profitability for DRAM manufacturers.

Tags: A-Data, DRAM, Business