The DRAM market faces such a severe oversupply that even if Qimonda stopped production immediately, which it has not, there is plenty of DRAM available to meet all needs, IDC said in a report last week.

DRAM makers also face falling demand for consumer electronics caused by the global economic downturn.

IDC predicts the global DRAM market will shrink 12.1 percent this year to US$22.84 billion because of oversupply and bloated inventories. Revenue in the market declined 17 percent last year to $25.98 billion.