DRAM Capacity Reduction To Stabilize Prices

Amid the tumbling contract prices, DRAM makers are already experiencing a loss. Despite the already dismal prices, the continuing ramp up from DRAM makers are allowing OEMs to ask for further price cuts. With DDR2 512MB U-DIMM 667MHz now only at USD17.00, there are at least some signs of a price stabilization in 2HMay. Contract Prices are expected to drop less severely in 2HMay, as some manufacturers have already reflected the persisting downward price trend in their 1HMay quotes. Thus, the pricing levels in 2HMay may be relatively the same as in 1HMay.In light of the current oversupply, some DRAM makers are reducing their losses by transferring some of their capacity to other types of products. This should help partly alleviate the demand and supply imbalance.