PC OEMs ink long-term supply deal to ensure stable DRAM supply through 1Q07, DRAMeXchange finds

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2006-11-28 15:44

Taiwan--(뉴스와이어)--DDR2 transaction was limited as majority of supply has reserved to PC OEMs, according to market research firm DRAMeXchange. Contract market, on the other hand, should capable to maintain its stability through 1Q07 on the observed long-term supply deal that inked among industry players.

Since some non PB free DDR chips that were made by Korean makers circulated at the spot market, prices of DDR 512Mb were reduced by 4.5% sequentially to US$5.27 where DDR 256Mb were also reduced by 1.3% to US$2.95. Spot prices of DDR2 also dropped at the spot market, despite demand still persists. Since contract customers still consume the majority of DDR2 supply, transaction was mute when distributors and module makers are still unable to secure stocks from the spot market. Price of DDR2 512Mb 667MHz still hold firm at US$6.26 but non-branded eTT (uTT) chips were slipped to US$5.43.

Starting from 4Q06, DDR is now the so-called "legacy" product as DRAMeXchange expected

Overall speaking, the downward DDR price trend is driven by demand rather than supply, though supply of DDR is actually declining among chipmakers. Intel, that aims to ramp up its DDR2-support 945/946 chipset proportion in expense of DDR-support 865 chipset, has whittled down penetration rate of DDR-supported chipsets at DTs from 3Q¡¦s 34% to the current 22%. DDR DIMMs are now barely found at the contract market and lots of chipmakers stop offering DDR quotations. Starting from 4Q06, DDR is now the so-called ¡§legacy¡¨ product as DRAMeXchange expected. DRAMeXchange expects DDR to replace SDRAM at some applications with prices to stabilize from 2007.

After experiencing the stronger-than-expected price growth at the contract market in 2HNov, DRAM should maintain its stable price trend in Dec along with the improving supply status. Tight supply should ease due to the following key reason:

1, some DRAM makers should start shipping 80nm DDR2 after gaining validation soon;

2, some PC OEMs may cancel some of their orders after realizing shipments could not catch up for Christmas.

There may be even chances to witness DRAM contract price trend beating its historical pattern in 1Q07.

Irritated by the DRAM shortage during Oct and Nov, DRAMeXchange finds some PC OEMs have inked long term supply contract through 1Q07 in order to ensure sufficient supply. Disregard DRAMeXchange projects PC shipments to decline on seasonality factor in 1Q07, DRAM contract prices should not see any critical fluctuation due to the mentioned supply agreement. There may be even chances to witness DRAM contract price trend beating its historical pattern in 1Q07.

About DRAMeXchange

DRAMeXchange is a global primary provider of future intelligences, in-depth analysis reports and advisory services on DRAM and Flash memory industry with coverage including current business, spot trading prices, and market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

Founded in 2000, DRAMeXchange serves more than 50,000 clients, including high level company officers, procurement salespersons as well as technology firms and investment community. DRAMeXchange supports IT industry executives, memory related companies, and the investment communities to make fact-based decisions on memory purchases and deploy business strategy. Information about DRAMeXchange and its researches can be found at www.DRAMeXchange.com.

웹사이트: http://www.DRAMeXchange.com