Qimonda insolvency improves oversupply-driven downturn; DRAM spot prices up
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DRAM spot prices have trended upwards since Qimonda filed for bankruptcy last week. The German DRAM maker’s insolvency announcement is expected to reduce supply growth, helping to stabilize pricing and mitigate the oversupply-driven downturn.
“Qimonda’s insolvency will have little immediate impact on the current oversupply situation in the DRAM market, since the company holds a small share of global production,” said Nam Hyung Kim, director and chief analyst, memory, for iSuppli. “However, for the full year of 2009, Qimonda’s insolvency means global DRAM bit shipment growth is now expected to be less than the 30% level, down from iSuppli’s previous forecast of 35%.”
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