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Memory chip makers cash in on higher PC demand

Posted: 01 Jun 2011 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM? memory chips? sales? flash memory?

Memory chip sales have surged with the rapid increase in mobile demand, and as flash memory set the industry standard for data storage on smartphones and other portable devices. Industry leaders believe that this trend will continue especially with rising optimism that the Dynamic random-access memory (DRAM) market is turning around.

This forecast was among those contained in The Bedford Report, which examines the outlook for companies in the semiconductor memory chip industry.

The Bedford Report forecast corroborates with earlier DRAMeXchange article about contract prices for DRAM chips. According to DRAMeXchange, contract prices for DRAM chips, which are key components in personal computers, increased in the first half of May due to a surge in demand from PC manufacturers. These PC manufacturers have targeted higher sales and a wider market share as Acer's business continued to decline.

Fueled by the higher demand from PC manufacturers, DRAMeXchange also projected that prices were likely to increase into the first half of June.

DRAMexchnge also forecasted that NAND flash chips, which are critical to portable electronics, will be oversupplied in May so that by the second half of 2011, their previously steady contract price will start to drop.

As this developed, Micron Technology Inc., which offers both NAND and DRAM products, announced last month its plans to sell its wafer manufacturing facility in Nishiwaki City, Hyogo, Japan, to Israel-based TowerJazz for $140 million. Of which, roughly $40 million will be paid in cash and approximately $20 million through TowerJazz ordinary shares.





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