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Koreans pump DRAM prices – again

They'll be making a profit next

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This is usually a time - before and during Chinese New Year - when DRAM prices fall.

Not this year. Samsung and Hynix are said to be "entering negotiations with their major buyers" this week to raise contract prices by 15 to 20 per cent, the Korea Times reports.

The price rise - if successful - will be the sixth increase since December. And it will take benchmark 128Mb DRAM prices comfortably past the $4 level. It means that the big DRAM makers can start making nice profits again - Samsung is there already (it says its DRAM business went back into the black in January.)

Contract prices for DRAM are fixed every two weeks and are based on prevailing prices in the spot market. These are expected to remain at current levels, at least, through to Q3, despite slack demand.

Production shifts to higher performance units which require more memory, coupled with reduced output will stabilise DRAM prices, Fechtor Detwiler, the investment forecasts. ®

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