Fri, Sep 17, 2010 - Page 12 News List

Drop in demand for DRAM expected to speed price decline

By Lisa Wang  /  STAFF REPORTER

A decline in contract prices of computer memory chips, or DRAM, is expected to accelerate next quarter as demand for electronics such as computers falls short of market expectation, Taipei-based research firm TrendForce Corp (集邦科技) said yesterday.

The price is expected to fall by 20 percent this quarter from last quarter, TrendForce forecast.

Increasing inventories are expected to push prices down by 13 percent this quarter from the second quarter as disappointing PC demand has forced most PC makers to cut their shipment forecasts for the second half of this year to less than 1 percent growth from an originally estimated 10 percent increase, the researcher said in its latest report.

Prices for a mainstream DDR3 are likely to plummet to US$1.5 per unit by year-end, TrendForce predicted. The DDR3 price dropped by 10.6 percent, the biggest decline in a year, to US$2.09 per unit in the first half of this month, from the previous two weeks, according to TrendForce’s latest quote.

Therefore, “DRAM companies are seeing lower profitability in the fourth quarter, compared with the first half of the year,” TrendForce said.

Looking forward, only companies rapidly migrating to cost-­efficient 40-nanometer technologies would be able to make a profit in the first half of next year, it said.

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