DigiTimes reports DRAM production cuts and bailouts of the DRAM industry have resulted in a DDR2 price hike of almost 20 percent. However, it's expected these supply-side price controls will only be effective in the short-term. The only permanent cure for the DRAM industry is an increase of market demand.
DRAM related distributors have been clearing inventories for several months meaning they are now short on supplies, said DRAM makers.
With the backing of the government assured, DRAM makers have started to fight back by strictly selecting customers and orders to drive up prices.
On December 18, effective tested (eTT) 1Gb DDR2 pricing jumped 18%, and branded 1Gb DDR2 prices also saw a 13% increase, according to industry players.