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DRAM contract prices to stay flat, says DRAMeXchange

Posted: 26 Dec 2005 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM? DRAMeXchange? DDR? DDR2?

DRAM contract prices will stay flat in the second half of December but chipmakers are joyful about potential rebound, said DRAMeXchange, a DRAM and flash memory industry analysts. DRAMeXchange further reported that although DRAM makers attempted to propose a slight DRAM contract price raise in the second half of December with reference to the hike of recent spot prices and solid customers demand, they were disappointed by the final quotes as most prices settled flat.

DRAM contract prices started trending down in September, with the drop of DDR modules reaching 22% and DDR2 reaching 32%. DRAM makers were forced to reshuffle capacity allocation and product mixture amid the severe price drop pressures. This was evident in the DRAM supply bit growth which was trimmed down to 2.65% in November, versus the 10% sequential bit growth that was recorded in September and October.

DRAMeXchange foresees some DRAM makers to continue quoting DDR2 at a lower rate than DDR to encourage DDR2 sales. Since chipmakers vary on their respective DDR/DDR2 production ratio and because customer demands also differ, the quotes for DDR and DDR2 should show only a slight difference among players, added DRAMeXchange.

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