News
 

Bookmark and Share

(0) 

Contract prices and spot prices of dynamic random access memory (DRAM) in the second half of March continues to slightly grow as a result of uncertain future of Elpida, according to DRAMeXchange, a research division of TrendForce. While PC OEMs have gradually increased stock levels as a precaution against Elpida’s potential withdrawal from the market, the market is still in situation of oversupply, which keeps spot prices low.

DRAM contract price continued to show an uptrend in the second half of March, 2012: a 4GB DDR3 module average price increased by 2.7% to $19, while average price-point of 2GB DDR3 memory module hit $10 mark, a 2.6% increase. From the market perspective, even though the DRAM market is currently in a state of oversupply, PC OEMs have gradually increased stock levels as a precaution against Elpida’s potential withdrawal from the market, while DRAM makers have taken a firm stance on price in hopes of maintaining the uptrend, which has resulted with contract price increase in the second half of March, 2012.

As for the spot market, in contrast to continually rising contract price, from the day Elpida filed for bankruptcy protection, average selling price of DDR3 2Gb 1333MHz chips has been fluctuating around $1 due to sluggish demand, relatively weak buying momentum, and generally low trade volume. This is a result of the fact that Elpida’s supply to the spot market has not decreased significantly, as well as the gradual decline of the spot market, which in past years easily had 20-30% market share, but accounts for only 13% of the DRAM market today. TrendForce indicates it is highly likely contract price will continue to rise in April, although it will still depend on third-place revenue holder Elpida’s next move. All of the above factors will influence the future DRAM price trend.

Facing a post-Elpida era, it is optimal timing for DRAM industry mergers and acquisitions. TrendForce indicates, Korean manufacturers’ combined market share has reached nearly 70% of the global DRAM industry, leaving only 30% for Taiwanese, U.S., and Japanese DRAM makers. The non-Korean makers are unable to compete in terms of economies of scale, technology migration speed and product mix. As a consequence, their losses will only increase, TrendForce believes.

Tags: DRAM, Business, DDR3, Elpida

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month