Kingston Plans to Build Memory Module Plant in Taiwan

Taipei, Nov. 14, 2008 (CENS)--Sincerely invited by Taiwan's Ministry of Economic Affairs, Kingston Technology Co., the world's largest memory module supplier, has decided to set up its new fabrication plant of memory modules in Taiwan, with the construction plan to be completed in the following two years, according to company sources.

Striving to solicit foreign investment, Economic Minister Yiin Chii-ming visited David Sun, founder of Kingston, in the U.S. headquarters in September to convince the memory module leader to build its plant on the island.

Confident of Taiwan's brisk economy and its unparalleled influence on global sectors of semiconductor and DRAM manufacturing, Sun hence promised Yiin to site Kingston's second fabrication plant of memory modules in Hsinchu County, northern Taiwan.

In fact, the recent global economic recessions have severely deteriorated the memory industry. Steep drops of ASP (average selling price) have effectively stimulated consumer demand for DRAM and NAND flash memory, helping Kingston to boost its global market shares. The firm's global sales of DRAM are estimated to grow annually by 15-25% this year, and those of NAND flash memory to double.

Last year, Kingston reported an all-time record of over US$4.5 billion for its annual combined revenue. Affected by the gloomy industry climate, the brand is expected to see annual revenue decline this year, but the firm's overall shipment will surely shoot up in the year, according to institutional investors. This hence prompts the brand to expand its capacity in Taiwan and China.

Noteworthy is that despite the global memory market staying bearish, Kingston is still optimistic about sales of memories, especially NAND flash models, in China in the fourth quarter, due mainly to the Christmas shopping season. Also, seasonal factors will help to keep selling prices of the products steady in the consumer market in the first quarter of next year, according to the brand.