News
 

Bookmark and Share

(0) 

Pricing in the dynamic random access memory (DRAM) market has become markedly less volatile since Elpida Memory filed for bankruptcy in February, deviating from long-term trends in statistically significant ways, according to an IHS iSuppli market research firm. DRAM pricing appears to have flattened since the bankruptcy announcement, althoug the Japanese maker had been the third-largest DRAM supplier in terms of sales in the Q1 2012.

In the twelve week period after Elpida’s February 27 announcement, the IHS iSuppli DRAM Price Index - a weighted average of DRAM spot price - stayed within a narrow band, hovering between 235 at the start of the post-announcement period and 243 on May 21. With a starting value of 1000 at the time it was first published in 2002, the Index gives a measure of how much DRAM prices are dropping. In comparison to the period above, the spread in the DRAM Index was much larger in a similar 12-week span prior to bankruptcy, ranging from 180 at the beginning of the pre-announcement phase up to 216 at the close of the same period, or a difference of 37 points.

Another measure of DRAM pricing changes, the IHS iSuppli Momentum Indicator, has also stayed at the 50% level since the announcement, an indication of neutrality with no upward or downward momentum.


The table shows both the DRAM price index and Momentum Indicator taken in various times before and after the Elpida’s announcement.

“With things still very much up in the air on how events will unfold, industry participants seem to be waiting for some indication of what the resulting industry structure will be like after an Elpida takeover is finalized. As a result, the current pricing environment appears to reflect this mood with the DRAM market eerily quiet, accompanied by visibly less pricing volatility atypical of the industry,” said Dee Nguyen, memory analyst at IHS.

In yet another indication that the DRAM market is behaving in uncharacteristically quiet fashion, the same trend of decreased pricing volatility is true for 2Gb DDR3, currently the highest-volume DRAM chip on the market. Just one week before the Elpida notice, pricing for 2Gb DDR3 fluctuated by a steep 17% from the earlier week. In comparison, weekly pricing on the 12th week after the Elpida bankruptcy showed that 2Gb DDR3 changed by a negligible 0.7%.

 What is happening is that a storm of speculation has risen on the question of who will ultimately take ownership of Elpida, and what implications there will be for the DRAM industry when that happens.  While U.S. memory maker Micron Technology Inc. has won the exclusive right to bid for Elpida, the deal still holds considerable interest for other parties.

Tags: DRAM, Elpida, Micron, DDR3, Business

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