Tue, Aug 30, 2011 - Page 11 News List

DRAM stocks rally after a recovery in spot market prices

Staff Writer, with CNA

Shares of Taiwanese DRAM makers yesterday rallied after product prices rebounded last week, dealers said.

Among the DRAM stocks, Nanya Technology Corp (南亞科技), Inotera Memories Inc (華亞科技) and Powerchip Technology Corp (力晶科技) all closed up 7 percent, the maximum daily increase, to NT$4.60, NT$6.42 and NT$2.61 respectively.

Adata Technology Inc (威剛科技) also closed up 7 percent after the company announced a buyback of 9 million shares — at a range of NT$19.04 to NT$44.13 from yesterday to Oct. 28 — in a bid to shore up its share price.

According to a report released by DRAMeXchange Technology Inc (集邦科技), a Taipei-based market researcher, the spot price of benchmark DDR3 2-gigabit DRAM chips rose 6.3 percent from a recent low to above US$1.01.

In addition to Taiwanese DRAM stocks, shares of Hynix Semiconductor Inc of South Korea also reacted positively to the price recovery, posting significant gains in Seoul.

“DRAM prices just made a technical rebound after recent steep declines on slowing global demand,” TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said.

So far this month, the price of DDR3 2-gigabit DRAM chips have fallen 19.49 percent.

“It is too early to say whether product prices will soon turn stable simply based on this single report,” Shih said.

“The nightmare of the global DRAM sector is far from over as demand remains weak. I expect further volatility in share prices of memory chipmakers to come despite today’s strong showing,” he said.

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