Capital spending affects prices

摘要

Buyers should keep a dose eye on the capital spending by semiconductor companies because capital spending provides insight into future pricing of chips.If suppliers increase spending to boost capacity,prices should drop. "We had a recent run-up of DRAM capital spending over the last couple of years by Samsung and other memory IC companies and we are seeing the effect of that in terms of very low prices for DRAMS," says Bill McClean,president of market researcher IC Insights.