Feeds

Samsung tests higher DDR DRAM prices

Contract negotiations

  • alert
  • submit to reddit

Samsung is seeking to raise contract prices for DDR DRAM parts, a company rep said today. This may not be a significant statement - Samsung investor relations vice president Chu Woo-Sik was responding to questions at a press conference announcing the electronics giant's Q3 results.

Contract prices are struck every two weeks and are based upon the prevailing spot market price. DRAM prices in Q4 typically rise, as PC makers buy in for the pre-Christmas build-out. It is questionable if this buying surge will take place this year, so deep is the retail PC doldrums.

Samsung, the world's biggest and most profitable DRAM maker, is not powerful enough to force prices upwards buy itself. And with the DRAM supply overhang, there is little evidence of an industry-wide ability, call it a cartel, if you will, to raise prices.

Samsung is forecasting a recovery in the semiconductor industry in the second half of next year. It says it has the product mix and cost structure to overcome a slump.

On product mix, Chu Woo-Sik notes that 256MB DDR DRAM still command a price premium and that "specialty products" are priced 2.6 - 4.4 times higher than commodity SDRAM, AFX Newswire reports. "When the synchronous DRAM chip prices fell 50 per cent in the third quarter, our DRAM average selling prices dropped to mid-3 usd from high-3," he says. ®

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.