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DRAM prices up thanks to Qimonda insolvency

Posted on Tuesday, February 03 2009 @ 02:17:49 CET by

DigiTimes reports Qimonda's insolvency is pushing DRAM spot prices upwards. The insolvency announcement from the German DRAM maker is expected to cut supply growth, which helps to stabilize prices in the oversupply-driven downturn of the DRAM market.
Latest quotes gathered by DRAMeXchange show that the price of DDR2 1Gb eTT chips has risen 25% (reported at 2:30pm in Taipei) since the first trading day after the Lunar new year holiday. Quotes for other mainstream DDR and DDR2 parts have increased by a 10-25% range. The quotes look likely to rise throughout the day.

"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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