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Old June 21, 2007, 08:28 AM
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Default DRAM spot price rebound foretells upward price trend

DRAM spot price rebound foretells upward price trend
Hans Wu, Taipei; Esther Lam, DIGITIMES [Thursday 21 June 2007]

Reviewing the recent DRAM price rebound at the spot market, industry players generally interpret it as a sign foretelling an industry-wide upward price trend at the contract market.

DRAMeXchange observes that effectively tested (eTT) DDR2 chips grew by 27.5% on a weekly basis and closed at US$2.04 on June 20. The same-specification branded DDR2 chips also saw an average growth of over 20% in the same period and closed at US$2.21 (667MHz) and US$2.19 (533MHz) on the same day.

As a major eTT parts supplier, Powerchip Semiconductor Corporation (PSC) raised its quotes for DDR2 by over 20% to over US$2 levels on June 20, correspondingly spurring DRAM prices up at the spot market, according to industry sources.

Industry watchers commented that the price adjustment that PSC made suggests that the chipmaker is confident about the future price trend, despite that the company is about to post its second quarter sales. Some are suggesting that the industry-wide price rebound is indeed a reflection of considerable procurement.

DRAMeXchange noted that some PC OEMs are already inking long-term contracts with chipmakers in order to prepare for an upcoming seasonality upturn. The memory-trading firm sees DRAM contract prices to trend up in the second half of June, if the recent price rebound as seen in spot market can sustain its upward momentum.

Source: Digitimes
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