ProMOS to raise 2007 capex as Vista boosts DRAM

Taiwan's ProMOS may raise its capital spending plans for 2007 to meet brisk demand for DRAM caused by the launch of Vista

ProMOS Technologies may raise its capital spending plans for 2007 to meet brisk demand for DRAM (dynamic RAM) chips caused by the launch of Microsoft's new Windows Vista OS.

The Taiwanese company's capital spending may be raised to speed the ramp up of a new 12-inch factory and hurry the construction of another such factory, said Ben Tseng, a vice president at ProMOS, in a phone interview on Thursday.

A company plan to build two additional state-of-the-art 12-inch chip factories over the next three years, at an estimated cost of US$7 billion will have no impact on current spending plans, he said.

"Even if we break ground later this year, that's not going to change the capex number," he said, because the cost would be minimal compared to the US$1.25 billion in spending the company forecast for this year. He declined to say exactly how much ProMOS might increase its spending this year because his company is in a quiet period mandated by stock market regulators to keep companies from divulging information ahead of a quarterly financial announcement or stock or bond issuance.

Taiwanese DRAM makers are planning to spend billions of dollars on new factories and equipment this year mainly due to Vista.

The new OS has helped DRAM companies with stricter system memory requirements for PCs and by increasing demand ahead of the launch.

Microsoft stipulates that computer makers install 512M bytes of DRAM for a PC to be considered 'Vista Capable,' which is good enough to run Windows Vista Home Basic. For Windows Vista Home Premium, Windows Vista Business, Windows Vista Enterprise, and Windows Vista Ultimate, Microsoft set the basic system requirement at 1G byte of DRAM.

It's a big difference compared to PCs running Windows XP, which requires only 125M bytes of DRAM.

DRAM prices surged last year as PC makers started making Vista-capable PCs and stockpiled excess chips ahead of the launch of the new OS. The price of the most widely used DRAM chips, 512M bit, 667MHz DDR2 (double data rate, second generation), leaped 61 percent last year to US$6.36, according to DRAMeXchange Technology, which runs an online DRAM market.

ProMOS's rivals in Taiwan have announced major spending plans on new factories this year. Powerchip Semiconductor, the largest DRAM maker in Taiwan by revenue, plans to spend US$2.1 billion, while the third largest player, Nanya Technology, intends to spend US$2.4 billion.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments





Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?