Semico Predicts Slow Year for DRAM in 2005

Phoenix, Arizona February 9, 2005 - Semico Research Corp’s latest 4Q04 DRAM report shows 3Q04 revenue was up a mere 1.2 percent over second quarter; however, it was up 53 percent compared to the same quarter in 2003. The Semico forecast was on the mark; grow more than 56 percent in 2004 with DRAM revenue totaling $26.8 billion.

Semico is still concerned about revenue for 2005. Overcapacity is forecast in 2005 due to optimistic new capacity building by DRAM vendors in 2004. This new capacity, combined with Semico’s forecasts for an economic slowdown that will result in slower growth in PC and cellular phone demand, is forecast to result in a 4 percent decline in DRAM revenue. Revenue in 2005 is projected to reach $25 billion.

The growth of 2004 in the DRAM market set the stage for excesses in 2005. 2005 revenue is forecast to decline driven by moderate falling prices. This of course will make the year more challenging. Some of this revenue decline is the result of smaller end-market growth, overall economic softness and oversupply.

This report includes a full forecast of DRAM by type and density, as well as quarterly geographic revenue trends and DRAM demand diversification.

To purchase, The DRAM Market Challenges for 2005, Fourth Quarter Update (Report No. VM101-05) please contact Jim Feldhan at 602-997-0307 or jimf@semico.com.

About Semico
Semico Research Corp is a marketing and consulting research company located in Phoenix, Arizona.
Semico was founded in 1994 by a group of semiconductor industry experts. We have improved the validity of semiconductor product forecasts via technology roadmaps in end-use markets. For more information about us, please visit www.semico.com

Contact:
Jim Feldhan
602-997-0337
jimf@semico.com