SMIC SDRAM production capacity to cut Meguiar's interest?

In May have been reported, the chipmaker plans to increase its SDRAM product price. Now, however, industry sources have begun to claim that the China based Fab plans to slash its SDRAM capacity from the third quarter of the year, with a range of between $70% and $80%. Industry observers pointed out that this move will help the company to purchase equipment for its new Fab 5 plant. According to The Standard, SMIC to the United States import and export bank loan application was rejected, because a stronghold of Idaho, micron - Senator lobbied hard and frustrating results. SMIC had originally planned to use the loan to buy the world's largest chip manufacturing equipment manufacturer Applied Materials equipment to equip its new Fab 5 plant in Beijing.

Industry observers have suggested that SMIC is looking for ways to ease the relationship with its competitors in order to successfully purchase new equipment. However, SMIC said that most of the memory manufacturers SMIC SDRAM often can not feel worried, because most of the major DRAM manufacturers put most of their attention to more advanced products, such as DDR and DDR2 chip.

However, industry observers pointed out that SMIC may cut its capacity to SDRAM micron has said they do not pay much attention to the DRAM business, and will not pose a threat to us.