Static RAM revenues plunged over 41% in 2001 from the previous year's levels, as falling demand from wireless and wired networking customers created major oversupply conditions, significantly depressing both unit shipments and ASPs, according to iSuppli Corp., El Segundo, Calif.
As a result, SRAM revenues totalled only $3.8 billion for 2001. Continuing weakness in these end-equipment markets is forecast to result in a further decline in SRAM revenues during 2002, with revenues projected to fall another 5.7% to just over $3.6 billion, iSuppli said.
"The tough market conditions for SRAM are being compounded by other market trends that actually threaten the viability of theSRAM business going forward," the company said. "New technologies like Fujitsu's 'FCRAM' and low power DRAM are actually displacing SRAM in many traditionally strong application areas.
"In addition, more and more SRAM is being embedded in SoCs, displacing sockets for discrete memory devices. Both of these trends will serve to dampen SRAM revenue growth through 2006, and may force consolidation within the SRAM supplier base."
A sudden upturn in consumer confidence that improves wireless handset upgrade rates or spurs the adoption of new 2.5G and 3G handsets, could put some new life into the moribund SRAM market in the short term, the company said.
"Without this, we see do not see a supply/demand balance that will stabilize ASPs occurring until 2003. This could bring double-digit revenue growth back to the SRAM market, but SRAM suppliers will still not achieve 2000 revenue levels by the end of 2006."