Tablets fueling DRAM demand

With the proliferation of tablet computers, the demand for dynamic random access memory is expected to increase significantly as a result. According to a recent report by research firm IHS iSuppli, the demand for tablets is fueling the DRAM market, which is expected to reach 333.7 million gigabits, a significant increase from the 37.3 million gigabits in 2010.

IHS iSuppli expects the DRAM market to reach 1.1 billion gigabits by 2012, eventually growing to 5.8 billion gigabits by 2015.

"Because of their soaring shipments, tablets are gaining increasing prominence in the DRAM market," said Mike Howard, principal analyst for DRAM and memory at IHS.

Although the tablet market has been dominated by Apple's iPad, more tablets are entering the market and providing competition.

"However, competition to the iPad is seeping into the market, driving further DRAM demand," Howard said.

Tablets are also affecting another market -- e-readers. According to a study of 1,000 U.S. consumers conducted by research firm In-Stat, 38 percent own a tablet, while 26 percent own an e-reader. Also, the total semiconductor market for companies supplying tablets will reach $13.8 billion in 2015, compared to only $1.6 billion for e-readers.