Intel Lowers Profits for First Quarter

This article hits home a little since I do work in the semiconductor industry. Anyways, Intel has projected lower profits due to slumping memory chip prices. The biggest two problems are prices in NAND flash memory which is typical in mp3 players and digital cameras, and the other big memory type is DRAM which is the most common memory in peoples computers.

I sincerely hope the industry as whole doesn't fall to into the grip of the possible looming recession. I know major memory chip manufacturers such as Hynix, Samsung, and Micron are hurting because of their overproduction or flooding of the market of NAND and DRAM chips. Now they are feeling the pinch of the demand not keeping up with the production and prices had to cut in order move the inventory. The reason for the ramp up in production was mainly because of an anticipated demand of DRAM memory because of Windows Vista having higher memory requirements than Windows XP, but as we know Windows Vista adoption is a lot slower than when Windows XP was introduced back 01-02. We'll see how this whole thing plays out as time goes on.