Major DRAM makers in Taiwan, Inotera Memories, Nanya Technology and Powerchip Semiconductor Corporation (PSC), all forecast a conservative industry outlook for the third quarter, according to company executives speaking at investors conferences on July 23. Among the makers, Inotera delivered the most pessimistic comments, saying that no rebound will be seen during the second half of 2008.

Inotera president Charles Kau said the gloomy economy will persist in the second half of 2008 due to consistent worldwide inflation. Impacts to the IT industry will be severe resulting in a weaker-than-usual seasonal upturn in the third quarter.

Executives from PSC echoed Kau's sentiments saying that low consumption will continue in the third quarter. The executives added that stricter customs checks are having a serious impact on DRAM sales in China – a major DRAM spot market.

Pei-Lin Pai, Nanya spokesperson and vice president of global sales and marketing, projected weak DRAM contract pricing in August, despite the fact a noticeable appreciation was seen in the second quarter. However, PSC is also relatively positive that a recovery will been seen in September, the executives added.

Most PC makers began to pre-stock DRAM for August in May and June, opting to take deliveries by sea rather than air to reduce costs, which resulted in the noticeable appreciation in second-quarter contract prices, Pai explained.