Semico Releases 4Q04 SRAM Study

Phoenix, Arizona February 10, 2005 - Semico Research Corp’s latest 4Q04 SRAM report shows a record year in terms of unit shipments. One would think the revenue would be pouring in but the truth is manufacturers made a lot less money this year. The aggregate ASP dropped in excess of 50% since 2000 when it was $5.31 and in 2004 it was a mere $2.45. The primary reason is that Pseudo SRAM (PSRAM) has made a big dent in the SRAM market. Low ASPs for these parts have driven down the aggregate ASP so much that comparing the current aggregate ASP against historical ASPs illustrates the dramatic change in the market.

Semico is forecasting an overall semiconductor downturn for the first half of 2005, and this will have an impact on the SRAM market. Units are forecast to decline 8.5% to 1.18 billion, and revenues will fall 8.9% to $2.9 billion. The SRAM market is increasingly threatened by both DRAM technology, which is more cost-effective and provides higher densities than SRAM can for many applications, as well as a trend toward embedded SRAM. This will result in the SRAM market slowly declining to 1.12 billion units by 2009.

New products continue to come out on both the high-speed networking side of the market as well as the low-power side, but overall activity is rather slow. Here are two recent examples:

In October, Samsung introduced a 72Mbit QDR II SRAM, targeted at high-performance switches and routers. QDR II devices can process up to four different data streams simultaneously. Operating at 300MHz, the SRAM is packaged as a space-saving FBGA, and will reach production levels in the first half of 2005.

In November, NEC announced a 128Mbit PSRAM based on the brand-new COSMORAM Rev.3, just released in September. This device is aimed at advanced cell phones capable of playing music, displaying photos, playing games, and videoconferencing. The PSRAM began sampling in December at $15, with mass production beginning in March 2005.

This report includes a full forecast of SRAM and PSRAM by density through 2009, as well as quarterly SRAM and PSRAM pricing through 3Q06. To purchase this report, SRAM Market Study 4Q04 (Report No. VM121-05) 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

Contacts:
Jim Feldhan
Semico Research
T: 1 602 997 0337
jimf@semico.com