Memory prices up 70%

— 12:25 PM on April 14, 2004

According to this article over at C|Net, memory prices have risen more than 70% so far this year. Memory manufacturers are apparently switching production over to flash memory products, which has produced a shortage that is driving up prices.

"DRAM prices are likely to remain firm this year and the following year,'' said Yu Chang-eyun, analyst at BNP Paribas Peregrine in Seoul. "We expect the market to be driven from the second half on PC replacement demand from the corporate side. We are looking at an 18 percent rise in global PC demand this year.'' Demand for flash memory--which, unlike DRAM, retains its contents when power is switched off--is so strong that chipmakers are switching a significant portion of their DRAM capacity to flash.
Manufacturers are reportedly also having problems migrating from 0.13-micron to 0.11-micron fabrication technology.
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