2 Makers to Cut Back on DRAM Chip Supply HOT STOCKS

The Japanese microchip maker Elpida Memory and Powerchip Semiconductor of Taiwan said Tuesday they planned to cut output of dynamic random access memory, or DRAM, chips in an effort to tighten supplies and shore up weak prices.

Makers of DRAM chips, used in personal computers, cellphones and other electronic products, have seen their profitability battered by sharp price falls, which have come amid an overall economic slowdown.

Elpida, the world’s third-largest DRAM maker behind Samsung Electronics and Hynix Semiconductor, said it planned to cut output by about 10 percent from mid-September. Powerchip, Elpida’s production partner in Taiwan, said it was starting to adjust its output plan to achieve a production cut of 10 to 15 percent, without giving a time frame.

Originally published by Reuters.

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