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DRAM vendors face torrid summer

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ComputerWire: IT Industry Intelligence

The DRAM industry in Asia is struggling to stabilize prices and launch them back on an upward trajectory even as observers predict no return to growth till the end of summer.

Prices slumped last week, as the market responded to new that Hynix Semiconductor was set to be broken up. Hopes that the cash-strapped Korean vendor would fall into the arms of US rival Micron Technology were dashed when an MOU between the two companies expired. Hynix was expected to pump product onto an already glutted market.

However reports from Asia yesterday suggested that the industry will have to wait till August before it sees any sustained revival in pricing. This is because the drop in prices following the Hynix debacle is being exacerbated by expectations of a slowdown in PC demand in the run up to the slow summer period. However, the reports added prices should not drop much further, and should bottom out around the end of this month.

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