DRAM downturn no longer oversupply-driven, say memory makers
The downturn faced by memory-chip suppliers is no longer driven by oversupply, since overall transaction volumes in the DRAM spot market have remained poor. Even if DRAM chip supply continues to shrink further, spot prices will still be below levels before the financial crisis began to grip the US and the global economies, memory makers have commented. Lack of market demand appears to be more crucial than estimates of when DRAM prices will hit bottom. The price of mainstream DDR2 1Gb eTT continued its downward trend on March 10, falling to the lowest level so far this year at US$0.78, according to quotes gathered by DRAMeXchange.
The makers noted that DRAM chipmakers including Elpida Memory, Powerchip Semiconductor Corporation (PSC), Micron Technology and Nanya Technology have contributed to the overall supply cut, showing their commitment to stabilizing DRAM prices. In addition, the makers pointed out that Samsung Electronics is lifting its prices, attempting to put the breaks on cooperation between Taiwan Memory and the entity’s potential technology partners Elpida and Micron. However, strategies to tackle an ongoing downturn in the memory-chip business have failed to activate the spot market in a sustained manner, since improving oversupply contributes little to economic recovery.
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