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Taiwan suppliers confirm DRAM doom and gloom

No pick-up until Q3

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Spot prices for 64Mb DRAM chips have slumped below $7 and are not expected to bottom out in the near future, according to Taiwanese DRAM makers. Newswire AsiaBiztech cites US semiconductor sources who "quoted the average price of a standard 64Mb DRAM at $7 on 8 February". Some orders were going for as little as $6.79 on the day. On 9 February, things got even worse -- for suppliers -- with prices slumping to between $6.68 and $6.88. So will there be any respite for DRAM makers in the near future? Taiwanese manufacturerers don't think so. They see supply/demand coming into equilibrium sometime in Q3, and shortages to rear their beautiful head in Q4, as the PC manufacturers ramp up production for the Pre-Christmas Build-Out. ®

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