SDRAM spot rise won't last – unless…
SDRAM spot market prices in Asia jumped today, with 128Mb 16x8 prices up nine per cent to $3.10. But PC demand remains weak and price rises are unsustainable without industry consolidation in the long term, according to Boston investment bank Fechtor, Detwiler and Co.
In a research note published today, the firm notes that in the short term the SDRAM spot price "will continue to climb because of the tight supply in the marketplace. Inventory burnout, lean reserves along with the end of year demand have all contributed to the surge in prices."
Fechtor Detwiler reckons the price upswing will continue for a while, so long as the big three - Samsung, Micron and Hynix - don't increase SDRAM production. It cites channel sources who say that recent demand for SDRAM has tripled, fuelled in part by manufacturers restocking parts to ensure that there are no shortages to hamper PC production. ®