DRAM makers to cut their losses

Amidst a wave of low demand in the DRAM market that's been responsible for a seemingly endless decline in prices, DigiTimes reports that some DRAM manufacturers plan to reduce production in order to cut their losses. The site says prices for DRAM chips have dropped uncomfortably close to the cost of DRAM production on 300mm wafers using 90nm process technology. Industry sources tell DigiTimes that a further decline in memory prices of just 20 to 30 cents "would mean that makers would rather stop production completely than lose money." Memory manufacturers reportedly hope cutting production will help equalize supply and demand in the third quarter of this year.

In the meantime, memory prices appear to still be sinking. We reported in last week's deal post that a 2GB kit of Kingston DDR2-667 memory was on sale at Directron for $69.99. Directron now sells that same kit for $66.99, and ZipZoomFly offers it for $67.90.

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