DRAM prices to sink further


— 9:23 AM on September 20, 2007

Prices for system memory were caught in a downward spiral in the first half of this year, but we heard a good number of reports that said prices would stabilize and even increase in the second part of the year. However, DigiTimes now quotes A-Data Chairman Simon Chen as saying DRAM prices are likely to sink further.

According to Chen, Taiwanese DRAM manufacturers have "aggressively expanded their capacity and smoothly converted to 70nm [process technology]," leading to oversupply. Demand has yet to meet expectations in the enterprise sector, too. Chen says DRAM capacity will grow even more this month, which should lead to further price reductions.

Chen says a "mild rebound" in DRAM prices is expected in October as motherboard shipments peak. That said, DigiTimes also has word from Nanya VP of global sales and marketing Pei-Lin Pai that October DRAM pricing trends "will depend on how PC [vendors] pile up their inventory."

 
   
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