Feeds

DRAM drama as vendors predict another price hike

Will they or won't they get it up before Xmas?

  • alert
  • submit to reddit

High performance access to file storage

Lock up your DRAM, because memory prices are going through the roof again.

That's according to Taiwanese vendors who, unsurprisingly, all agree that DRAM prices will rise by the end of the year. Winbond Electronics has put forward a conservative estimate of $7.2 for 64Mb DRAM chips by the end of 2000. By contrast, "hopeful officials" at Micron Semiconductor yesterday suggested to Taiwan's Commercial Times that prices could top $20.

Meanwhile, a Winbond exec indicated that supply of 64Mb DRAMs would probably fall 20 per cent short of demand this year, and fare worse in 2001. Both Winbond and Vanguard International Semiconductor (VIS) are trying to upgrade to 0.18-micron manufacturing technologies from 0.2-micron to make 64Mb DRAMs cutting the volume of DRAMs they can produce. "Manufacturers need to go down to 0.18, but they are ramping production at the expense of the other (technology).

But this is a backward step to move forward," said Richard Gordon, a senior analyst at Dataquest. Gordon, who predicts serious shortages by August/September this year, thinks the predicted 20 per cent shortfall "extremely severe". "This would be at the high end of expectations, but there will certainly be significant shortages," he said. He added that the $20 estimate by Micron is a tad optimistic, with IDC predicting prices will more likely settle somewhere in the $10 range by December.

However, the ball is still in the vendors' court. "We will see a fairly significant price hike in the second half of the year. But it could go anywhere. What defines it is what price the vendors can extract. They will hike it up until the OEMs say enough is enough," said Gordon. A source within the industry, who asked not to be named, added: "The traditional attitude of Taiwanese manufacturers is to talk the market up. But there is no real reason why prices should be going up."

Today saw UK-based memory distributor Dane-Elec quoting unit chip prices of $6.25, and $52 for 64MB 8x8 DIMM. Prices were relatively stable compared with last week, the company said, but added it expected chip prices to rise to $7 by the end of the month. ®

Related Stories

DRAM makers squeeze supplies, price rises, surprise, surprise
DRAM spot, contract price gap grows
DRAM spot prices fall through the floor

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.