Memory-module maker Transcend Information and DRAM testing house United Test and Assembly Center (UTAC) Taiwan believe that a further DRAM price drop is unlikely, as prices should about to hit bottom with no more room for further drops, according to executives from the companies.

Transcend company chairman Peter Su indicated that DRAM prices should be edging to a bottom with a critical drop unlikely to be seen. Citing an historical pattern, demand is expected to be strong in October and November at retail markets, he added.

As a major DRAM testing partner for leading DRAM supplier Hynix Semiconductor, UTAC Taiwan echoed Su's sentiment. Company vice president Zhong-zhe Tsai (transliterated from Chinese) said a further DRAM price drop is unlikely, given that the spot price of a 512Mb effectively tested (eTT) DDR2 chip had dropped to the US$1 level. Yet, he added in saying that he is not fully confident that no further price drop pressure will be seen in the fourth quarter.

Whereas for NAND flash, Su foresees a downward price trend will persist throughout late 2007, while reiterating that cautious inventory control should free the company from any critical impact on profitability. Tsai, on the contrary, anticipates a price rebound to arrive as present prices are low enough and demand is expected to resume. However, he did not deliver a concrete forecast for the time frame of this projected price rebound.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved