Memory prices fall in false dawn

After optimism that DRAM prices were on the mend last week, prices have again dropped during the course of this week, according to memory distributors and manufacturers. But there could be light on the horizon, as the manufacturers make a concerted attempt to keep prices up. Alan Stanley, MD of Dane-Elec, said: “We’ve seen a drop this week. US prices went down three or four per cent, two or three days ago.” He said: “We are still seeing shortages. Manufacturers are still committed to bringing the price up and they’ve got to be suffering.” Stanley said that some manufacturers were giving lead times for parts for which they actually had large stocks, in an attempt to bolster prices. Roy Taylor, joint managing director of Vanguard Microelectronics UK, said that the industry is currently going through its worst period ever. “This week DRAM prices have gone back down,” he said. “Everyone in the industry is very keen for recovery in the market to be true but demand has been crashing down again.”