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Published: 13 January 2000 15:29 GMT
Dataquest has predicted a two-year shortage in the DRAM memory chip market.
At the annual Industry Strategy Symposium, Klaus-Dieter Rinnen, Dataquest analyst, said that after a short excess capacity at the start of 2000, demand will exceed supply. He commented that manufacturers will need to increase their spending by 300 per cent by 2002.
The DRAM market took a battering in the late 1990s with a fall in worldwide revenue from $42bn in 1995 to $15bn in 1998. But Dataquest predicted the market will make a strong recovery - reaching $30bn in 2000 and $63bn by 2003.
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