Economic crisis will keep DRAM pricing low

DRAM prices will not rebound until the second half of 2009, when the overall global economic outlook brightens as well, according to Frank Huang, chairman of Powerchip Semiconductor Corporation (PSC).

Huang indicated that as the price for DRAM has dropped close to cost, many DRAM players are cutting their production by using various methods, following in the example first shown by PSC early in September. Huang estimates that global DRAM production will decrease by 20% by the end of the year.

However, the impact of production cuts for DRAM may not be seen in the market until December this year, and if players are looking for a rebound in DRAM pricing, they may have to wait until the overall economic conditions improve worldwide, said Huang.