DDR2 memory chip prices to increase 40%

Posted on Sunday, Jan 27 2008 @ 00:45 CET by Thomas De Maesschalck
CENS writes prices of DDR2 memory chips will increase in the second quarter of this year. Currently DDR2 memory modules are very cheap but this may change as pricing of 1 gigabit DDR2 chips is expected to surge at least 40 percent.
Nanya Technology Corp. forecast global supplies of DRAM (dynamic random access memory (DRAM) chips will become tight in the second half this year, given the fact that the market recovery has begun taking hold in the first quarter of the year.

Nanya executives pointed out that market rebound will become stronger in the second quarter. They projected contract prices of 1Gb DDRII chips to surge at least 40% to US$2.5-3 apiece some time next quarter from current US$1.8 or so.

The company`s spokesman, P.L. Pai, noted that contract prices of the chips began bouncing back shortly after spot prices sprang as a result of inventory backlogs at retailers running low. He estimated contract prices of the chips will likely rise only at moderate rate throughout this quarter and the growth will likely gather pace next quarter in anticipation of eager expansions of memory capacity in personal computers in conjunction with rollouts of new version of Microsoft Vista.

Pai felt that DRAM demands from end-user market are not weak now and many of his company`s customers have come to negotiate orders for delivery in the second half of the year, showing signs of recovery.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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Re: DDR2 memory chip prices to increase 40%
by Anonymous on Saturday, Feb 02 2008 @ 12:24 CET