Microsoft Vista blamed for memory glut

The chairman of Taiwanese memory company Transcend has blamed Microsoft Vista for being responsible for a supply glut.

According to Digitimes, Peter Su said that DRAM prices won’t rise above $2 any time soon and that’s going to prevent the manufacturers from investing in advanced process technology for the memory chips.

The Taiwanese manufacturing companies are hoping that a government body, the Taiwan Memory Company, will ride to the rescue of the DRAM business.

The notion that the lack of adoption of Microsoft Vista is to blame for the glut ignores the fact that the DRAM manufacturers ramped up their production irrespective of any operating system and that this sector of the industry was in the doldrums for a clear 18 months before the credit crunch hit.

The basic problem they face is that of overcapacity, rather than lack of demand. The Digitimes story is here.