Memory market may be recovering at last

The memory industry has been through a pretty rough patch these past two years. Prices started going into a downward spiral in 2007, and last year's financial crisis only made matters worse. Some memory makers didn't make it. However, DigiTimes now says A-Data CEO Simon Chen has an optimistic outlook for the next couple of years.

According to Chen, the NAND flash and system RAM markets started to recover last quarter, and chip prices "rebounded." A-Data itself saw its revenue increase substantially in August and September, with sales 43% and 79% higher than a year before, respectively.

Chen now foresees the market returning to the 2006 or 2007 status quo next year. He reckons oversupply won't pose a problem like it did in 2008, because memory makers' dire financial conditions will curb production. Also, the market could see increased demand from emerging markets.

We've certainly seen system memory prices go up in recent weeks. 4GB kits of DDR2-800 RAM sell for at least $62 at Newegg these days, while in our February 2009 system guide, we were able to include similar kits for only $43. At this rate, DDR2 and DDR3 could soon reach price parity, too.

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