DRAM prices to rise 5-10 percent this month

DRAM contract prices for March were previously anticipated to go much higher amid concerns that Elpida Memory's possible exit from the DRAM industry might cause a decrease in supply, the sources indicated. However, a continued slowing in end-market demand has discouraged PC OEMs from replenishing inventory causing March prices to likely see less-than-expected growth, the sources said.

Chip suppliers are still negotiating March quotes with their OEM clients, which refuse to accept the requested up-to-10% increase, claiming a lack of a visible rise in demand, the sources disclosed.