DRAM prices may soon hit bottom, Says DRAMeXchange

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2007-04-24 18:17

Taiwan--(뉴스와이어)--According to the latest report from market research firm DRAMeXchange, the DRAM contract price slid to roughly USD 20 for 2HApr, which also affected the spot market price trend. In light of the PC selling season in 2H07, DRAM demand is expected to increase, as PC OEMs build up on their inventory. Therefore, 2H07 may represent the bottom of the current extremely low DRAM pricing levels. The persisting price declines have pushed DRAM makers to the verge of losing money. Migrating to more advanced manufacturing processes, and increasing the shipments of 1Gb chips will be two key factors in deciding how the respective DRAM makers perform in 2H07.

The pricing environment for the spot market remained weak, as demand was still sluggish. The DDR2 512Mb 667MHz tumbled to roughly USD 2.57, while the DDR2 eTT dropped to USD 2.05. In the contract market, prices fell as well, due to the removal of excess inventory by PC OEMs. Contract prices of the DDR2 667MHz 512MB were mostly finalized at USD 20 or even lower.

The current declines in the DRAM contract price have been much bigger than originally expected. This has been mainly attributed to the weak seasonality in the PC market, and huge imbalance in the demand and supply chain. DRAM makers have been forced to sell their chips at extremely low prices, as their monthly capacities continue to increase. Fortunately, with the inventory levels of PC OEMs now running lower and quarter end financial reporting coming to an end, DRAM demand may start to pick up. Coupled by the strong seasonality in the PC market in 2H07, the dismal DRAM chip prices may soon rebound.

The ongoing price declines are dragging DRAM makers to the brink of losing money. In response, manufacturers are trying earnestly to further cut down costs. For instance, Micron recently announced the successful development of the 1.5V DDR2 chip using the 78 nm manufacturing process. The smaller voltage is capable of saving approximately 24% of power. As Micron owns a larger ratio of the less cost-effective 8 inch fabs, it is introducing chips with special specifications, in order to avoid the fierce price competition in the commodity DRAM market. For Samsung and Hynix, they have begun to run test trials using the 68 and 66nm process, along with increasing the shipment ratio of 1Gb chips for 2H07. On the other hand, Taiwan manufacturers are continuing to boost the capacity of their 12 inch fabs. Needless to say, amid the rapid capacity increase, the cost down mechanisms being introduced by the DRAM manufacturers will play an instrumental role in their future competitiveness.

웹사이트: http://www.DRAMeXchange.com