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Infineon sees sun through DRAM clouds
But don't expect good times just yet
Infineon reckons the outlook is good for the world DRAM market, but warned the industry that it shouldn't expect prices to pick up significantly.
"In general, we see the medium term and long-term growth potential for the semiconductor market as very positive," said Infineon's CEO, Ulrich Schumacher, at the chip company's annual shareholders meeting today.
The Dramurai has already predicted that the memory chip market would begin to improve again in the second half of the year. But given the continuing gloom in the industry, it's interesting that the company feels it important to signal that, despite the current situation, matters will improve.
"The development of the memory market is showing preliminary indications of growing demand and an increase in DRAM prices as well," said Schumacher.
Still, everything's not yet rosy in the garden, and he followed that statement up by warning: "However, it is not clear yet how sustainable this price development will be."
Recovery or no, Infineon is still cutting its investments in plant by 500 million euros ($448.86 million) to 2.8 billion euros ($2.50 billion). It is also instigating a cost-cutting programme intended to wipe 700 million euros ($628.4 million) off its operating expenses. ®