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Although the dynamic random access memory (DRAM) market remains in the state of oversupply, SK Hynix Semiconductor and Samsung Electronics ceased to slash memory prices in the first half of April due to uncertain situation with Elpida Memory and other market developments. As a result, contract prices on DRAM increased slightly in first half of April.

DRAMeXchange, a research division of TrendForce, as buyers and vendors have been in disagreement over price this month, first half of April contract price figures were not available until the third week of April. Average 4GB and 2GB module price was $20.25 and $10.5, respectively, representing increases of 6.58% and 5%. The DRAM market researchers attribute price growth to uncertainties with Elpida and reluctance of South Korea-based makers to reduce DRAM prices.

Nonetheless, DRAMeXchange DRAM industry remains in a state of oversupply (latest sufficiency ratio is 12%). As DRAM suppliers are gradually nearing fully loaded capacity, the supply and demand gap has not shrunk noticeably. From the demand perspective, although industry players generally believe PC shipments will see gradual recovery this year, PC OEMs indicate that April shipments have not met expectations. This discrepancy is evident on the spot market – since Elpida filed for bankruptcy in late February, 2Gb chip price has been fluctuating  around $1, an indication that consumer demand is insubstantial.

Aside from continuing migration to the 20-class nm process, leading DRAM makers plan to gradually decrease PC DRAM output ratio due to increasing demand for mobile and server DRAM. Makers are also taking a firm stance on price negotiations. TrendForce believes the DRAM industry will gradually transition from a competitive market to an oligopoly, where manufacturing and price strategies keep each other in check and there will be a return to stricter market discipline.

TrendForce expects that as suppliers continue to avoid steep discounts, DRAM price quotes will continue on an upward trend. As DRAM suppliers’ are generally approaching fully loaded capacity and Elpida has not yet announced any capacity withdrawal, the contract price trend increase is expected to gradually slow in the future.

Tags: DRAM, Business, DDR3, Elpida, Samsung, Hynix, SK Hynix

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Comments currently: 2
Discussion started: 04/24/12 01:40:56 PM
Latest comment: 04/25/12 01:27:36 PM
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If any of these companies would bother to check DDR2 prices they'd notice a business opportunity there and stop nagging about falling DDR3 prices and oversupply issues. DDR2 is still used a lot and it would most probably be used even more so if prices actually compared to DDR3 prices. People are barely now starting to upgrade to 64bit operating systems en mass but there's none that would offer them additional DDR2 modules needed to benefit in any significant way from it? OK, so we upgraded to Sandy and Ivy... or 8 core AMDs... whatever... most of us still hold on to our socket 775/939/AM2/... with DDR2 support (because they're perfectly capable machines BTW) and run home servers on it or similar. Actually, what am I saying... most of us? This "most of us" is like 10% of world's population. Most others probably still dream of ever owning a socket 775 DDR2 PC with C2D in it. Not to mention most of the networking equipment that uses DDR/DDR2 simply because latency matters more than total bandwidth there (which is good enough even with first generation DDR) and you gain nothing by going the DDR3 route, possibly lose a lot. Or all those "older" Opteron servers? Where do these market analysts live? No wonder I never realised there actually were any.
2 0 [Posted by: MyK  | Date: 04/24/12 01:40:56 PM]
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You got it.

I would love to upgrade from 4GB to 8GB ddr2 pc6400 for a decent price.

My q9550@3.9 is perfectly fine, but my VMs start getting low on memory (and BF3 would run way more fluently... but sssh... don't tell people i'm an "enthusiast" and a "gamer" ).



1 0 [Posted by: Marburg U  | Date: 04/25/12 01:27:36 PM]
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