Feeds

Infineon slams Samsung DRAM ‘artificial pricing’

Scapegoat?

  • alert
  • submit to reddit

The recent surge in DRAM prices is the result of manipulation by Korean producer Samsung, rather than a ramp-up in demand, Ulrich Shumacher, chief executive of Infineon, claims.

According to Schumacher, DRAM pricing should have dropped due to chip supply still exceeding demand when Hynix's creditors rescued it last month.
Instead, the market has seen pricing claw its way back towards some respectability.

In an interview with the FT, he argues that Samsung pushed prices down artificially to pressure a competitor collapse. After Hynix's rescue it realised that a depressed price point was no longer affordable as a potential collapse was still another four or five months away.

Shumacher's opinion is controversial. DRAMeXchange's opinion on the price hike earlier this month collectively blames major producers controlling shipments, rather than a single company pressuring the market into a change of pricing direction.

And as to the DRAM price rebound, well memory prices always rise at this time of year, as PC system builders scurry to fulfil their pre-Christmas orders.

128MB SDRAM pricing edged towards an average spot price of $1.70 this month - nearing manufacturer cost price of about two dollars - but is playing around the $1.55 mark.

Reg readers reported corresponding price jumps at the retail level in various global regions, including the Netherlands and Canada, saying that prices have "doubled" and "spiked up to 40 per cent in one day", respectively. A Dutch retailer pushed its 128MB SDRAM price from 16 Euros ($14) to 30 Euros ($26).

Following its rescue, Hynix said it will spend more money on new plants next year - despite the fact that many of its rivals are cutting their 2002 equipment budgets. It plans raise capital expenditure by 500 per cent next year, to $935 million, subject to creditor approval.

The same creditors have also said that if the company proves to be unviable, it could be shut down or sold off to creditors. ®

Related Stories

DRAM bounces back (maybe)
Hynix considers consider killing company off
Hynix plans sixfold increase in equipment budget
Creditors OK $7bn Hynix rescue plan

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.