Vista to drive up DRAM prices in 2H07

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Powerchip Semiconductor Corporation (PSC) president Brian Hsieh today expressed optimism that the Windows Vista operating system will drive up DRAM prices in the second half of the year. Hsieh said the low season may last until May or June, but demand will pick up in the second half.

While DRAM prices have dropped sharply in February, edging close to PSC’s production costs, there will be little room for further declines, Hsieh said. The PSC president said DRAM spot prices should stay at around US$4 in the first half of the year, and will climb to US$4.5 in the second half, thanks to Vista-stimulated demand. Hsieh’s remarks echoed Micron CEO Steve Appleton’s expectation that Vista will drive up DRAM prices.

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