Kingmax uses coding to see off memory counterfeiters

One of Kingmax’s goals this year is to stem the amount of memory counterfeiting in the market.

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By  Jason Saundalkar Published  September 26, 2005

Flash and DRAM memory products manufacturer, Kingmax, has found a novel way to take on counterfeiters: it reckons it is the only company in the world to make coloured memory chips. Lawrence Chang, vice president, sales and marketing of Kingmax Semiconductor says, "Counterfeiting is certainly a big issue, especially in China where if you are a brand name that is big and famous, there will certainly be parties who will try to counterfeit your products. One of the biggest steps that Kingmax takes to make counterfeiters lives as difficult as possible is the use of coloured BGA chips." As counterfeiters usually operate on the premise of selling duplicate products well below market prices and in bulk, counterfeiters will not find it cost effective and quite difficult to contract any amount of coloured module manufacturing. This is simply because Kingmax is the only memory company in the world to manufacture coloured memory chips. However, organised crime is not the only challenge that Chang and his company faces. The memory market has seen quite a significant drop in the average prices for DDR2 memory modules, even though Intel was the only company pushing for widespread adoption of the newer memory technology. "DDR2 demand is now being driven mostly by channel sales and the big OEM companies such as Dell and HP. If the big players keep up the push with the notebook and OEM markets, and with Intel pushing OEMs to increase overall DDR2 memory production while lowering overall costs, then DDR2 prices will almost certainly drop," says Chang. In addition to all this, recent price fluctuations have resulted in DDR DRAM prices increasing while DDR2 prices remaining almost stagnant. The end result has been that DDR2 memory is now lower than that of DDR memory. As of quater two this year, about 8% of Kingmax semiconductor's production was devoted to DDR2, he says. In quater three we anticipate this to rise to about 10%, while in quater four, we estimate DDR2 to take up about 20% of Kingmax's total memory production output.

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