The persistent price drops for DRAM are weighing on industry players with some smaller-scale, and possibly first-tier, players said to be unable to pay in a timely manner, according to industry sources.

Given that most DRAM module makers previously piled up their stock in an attempt to meet the seasonal upturn, the downward price trend has thus placed severe financial pressure on them, the sources explained. Many memory module makers have rejected the sourcing for new chips recently, claiming that they face stiff inventory pressure and insufficient funding.

The sources noted that recently some second- and third-tier memory module makers have been having issues with bounced checks. Banks, who are concerned about a possible domino effect, are thus reluctant to fund some memory module makers' expansion plans. While smaller-scale players having financial issues, chipmakers are also seeing an aggregating financial burden and are aggressively pushing their stock to downstream players, the sources noted.

By: DocMemory
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