An oversupply looms above the DRAM industry following “overambitious expansion plans to support Windows Vista,” Hynix had increased capacity 159%, Inotera by 112%, Elpida by 103% and Samsung by 86% to support Vista’s hardware requirements. According to DigiTimes, when Vista sales failed to live up to expectations, coupled to a now downturned global economy, DRAM makers have huge memory overstocks and have announced significant capital expenditure cuts for 2009.
Micron has announced a reduction of nearly 50% to between $650M and $700M (down from $1B to $1.3B). Hynix announced reductions of 24%, to $373M. Powerchip has also reduced capital expenditures by half, from $606M to about $300M.
As of July, 2008, Vista sales had reached 180 million registered licenses, according to Microsoft.