Taiwanese DRAM Makers are Reportedly Delaying Orders

Not surprising, but worth noting: the incredibly harsh DRAM pricing environment is leading to some semiconductor equipment order pushouts by memory chip companies in Taiwan, according to Caris & Co. analyst Ben Pang.

Pang noted today that the Taiwan-based DRAM producers Winbond and Nanya pushed out orders with equipment companies at the end of December. He says Winbond’s expansion project “is likely to be delayed for the entire year of 2008 unless there is a dramatic turnaround in DRAM pricing.”

Pang says that, despite widespread Street expectations of a sharp drop in DRAM-related cap ex in 2008, “there is still a high probability that earnings estimates will continue to decrease” for semi equipment companies. And he says “there do not appear to be positive catalysts on the horizon.”

Companies affected by order pushouts, he says, include Applied Materials (AMAT), Novellus (NVLS) and Lam Research (LRCX).

Pang sees DRAM capital spending overall down 30% this year; he says that is actually less than the consensus view for a 50% cut. “We think the spending cuts by the second and third tier memory companies will allow the top tier memory companies to continue to spend,” he says.

In an extremely weak tech tape Wednesday, AMAT is down 51 cents, or 2.9%, at $17.25; LRCX is down $1.11, or 2.6%, at $42.12; and NVLS is off 97 cents, or 3.5%, at $26.60.