As DRAM supply is playing an even more crucial role in the graphics card business lately, the trend of operation crossover is emerging. Graphics card maker Leadtek has decided to set up a DRAM module design and manufacturing subsidiary to ensure sufficient supply, while DRAM module manufacturer Transcend Information plans to use its current advantage to start a graphics card operation.
DRAM supply has always been a key factor in the graphics card sector, as most DRAM chips would be offered first to meet demand in the bigger PC market. A better capability to secure memory supply and adjust inventories is thus a great asset for graphics card manufacturers in ensuring profitability.
Through the establishment of a new subsidiary, Leadtek hopes to avoid DRAM shortages in the future. If production goes well, the company also plans to offer memory products to other graphics card manufacturers.