Chip demand rising, DRAM and Flash prices plunge

Posted on Wednesday, Aug 06 2008 @ 09:11 CEST by Thomas De Maesschalck
TG Daily published an article about global chip sales and writes prices of 1Gb of DRAM have declined 43 percent during the past year while prices of 2Gb NAND flash chips have dropped 61 percent in the last 12 months:
Memory products remain the major concern of the chip industry. Excluding memory products, the industry would have grown by 12% in H1. The SIA said that price attrition in memory products contributed to a 6% year-on-year decline in total memory sales despite sharply increased unit sales.

“Advances in semiconductor technology continue to deliver huge benefits to consumers, as semiconductor devices deliver higher performance and increased functionality at lower cost,” said George Scalise, president of the SIA. “At the same time, rapid price declines for microchips tend to mask the real growth of the industry. The cost of 1 Gb of DRAM has declined by 43% during the past year, while the price of 2 Gb of NAND flash has declined by 61% in the last 12 months. Lower prices enable increased memory content in consumer devices. Micron estimates that the memory content of the average PC will increase at least 50% this year, while the memory content in the average cell phone will increase by more than 150%.”

Of course, the dramatic situation in the DRAM and Flash memory industry means that consumers will be able to purchase memory for much lower prices. And a recovery of the segments isn’t expected to arrive anytime soon. Market research firm iSuppli said that “the global DRAM market is showing renewed signs of weakness, with prices expected to fall during the third quarter due to bloated inventories.” The firm said that “OEM contract prices for DRAM likely to decline in August and September.”

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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