Feeds

Hynix leaves DRAM market spotless

Falling prices causes memory loss

Choosing a cloud hosting partner with confidence

Hynix, the Korean computer memory maker, is fleeing the DRAM spot market - because prices are too low. That's not the spin the company is putting on the decision, telling Reuters that it wants to "enhance our flexibility and strengthen our position in the contract market".

This should make sense: according to market watcher DRAMeXchange, a component shortage in the contract market "is constraining the shipments of PC OEMs for the second half, where some manufacturers have even lowered their overall shipment targets". But shortages are expected to ease in October.

So why is Hynix leaving the spot market - it typically pumps out 15 per cent of its DRAM through this channel - at a time when shortages are on the cusp of becoming ex-shortages? Crazily, demand for DRAM is booming but prices are plummeting.

Typically, when demand is strong, spot market prices for computer memory are higher than official contract prices. And this is the busiest time of the year for PC makers - as they build out for the Christmas retail bonanza. This year, spot market demand is rising, but prices are hitting record lows, market watcher DRAMeXchange said today.

So it looks like Hynix simply wants to turn the tap off a little until prices start rising again.

PC builders like to play the spot market - and in the late nineties and early noughties many European PC OEMs made more money trading in DRAM and CPUs than in actually building PCs. VAT carousel fraud had nothing to do with that mini-boom, of course. ®

Security for virtualized datacentres

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.