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DRAM makers stocking up inventory

Posted on Monday, April 21 2008 @ 05:04:32 CEST by

DigiTimes reports DRAM makers are trying to ease their financial performance by stocking up on inventory:
Spot prices of DRAM hit new lows last week as DRAM makers, who are about to release their first-quarter financial results, dumped inventory in order to boost their financial performance for the quarter, according to industry sources. As worries about inventory eased, DRAM makers, especially the two leading Korean players, started stocking up on inventory, leading to a temporary equilibrium, said the sources. Some DRAM makers indicated that they are wary of supply to the market as they may be exposed to bigger losses in the second quarter if supply still outpaces demand then.

However, industry players do not appreciate much the disciplined supply control, saying that DRAM makers are just manipulating the market with illusions of tightening supply. They added that if demand does not rebound in mid-second quarter, DRAM makers will again dump their inventory and cause another wave of panic transactions.



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