DDR2 prices to rise next month

DRAMeXchange has a bullish outlook for third quarter DDR2 pricing on an anticipated supply shortfall of 10-20% occurring late in the quarter. The rebound in DDR2 contract prices should arrive perhaps as soon as the second half of July while demand should continue growing as industry players start preparing for the release of the Windows Vista operating system (OS) in the fourth quarter, the firm said.

DRAMeXchange expects PC OEMs to succeed in receiving a 3-5% price cut for DDR2 in the first half of July as prices have risen to a relatively high level since February. However, DRAM makers should be able to start proposing price ups from the second half of July and prices should rise further in August, the firm said.