One Step Forward, One Step Back

Hynix and Samsung for the first quarter reported rising ASPs in NAND if not DRAM and credit cuts in production in Taiwan for these rising ASPs. Furthermore, they are considering capacity shifts from DRAM to NAND (link). Unfortunately, given the Japanese government's announcement of support for Elpida, the necessary reduction in DRAM capacity may take quite a long time to work its way through the global system as each country offers support for its own firms. Unless it can get Taiwanese government support despite initially rebuffing Taiwan Memory, Nanya and its partner, Micron, look like the odd men out.