DRAM prices still dropping

Last week the DRAM price was in decline dropping nearly 10 percent. Due to the weak market demand, many retailers and module houses have sold DRAM chips at lower prices, resulting in the DDR2 eTT price to fall through May’s low of USD $1.32, down by 17 percent.

As the second half of the year usually marks a typically stronger PC market, many module houses and retailers increased their DRAM inventory during the last few months. This upturn, for the back to school and christmas market, rarely lasts beyond September. This year it hardly helped.

DRAMeXchange believes that the overall chip supply will increase minimally during the rest of the year. The Korean manufacturers are diverting some DRAM production to Flash instead, the report says.