Computer memory chip maker Micron said on Wednesday it had indications that demand for DRAM memory chips, used mainly in personal computers, would be robust enough to soak up rising supply in 2005.
Relatively tight supply also means that selling prices will remain constant for the rest of this year, creating a healthy outlook for a sector which is able to cut production costs by between 30 and 35 percent every year, the worlds third biggest memory chip maker said.
"What we see are indications for pretty robust demand in the year 2005 and probably sufficient to absorb new capacity," the companys head of sales, Mike Sadler, said at an analyst conference hosted by the U.S. company in London and broadcast on the Web.
"Prices are stable or going up, and we see that certainly continuing for the rest of the calendar year," he added.
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News source: Reuters