DRAM prices posted a noticeable appreciation recently, according to Dramexchange. Spot price as well as contract price both saw an exciting upward trend last night. In spot market, as supply of DRAM reduced markedly, DDR2 branded chips appreciated more than 10%. Average price of 512Mb reached USD 1.11, for 1Gb part, the price stood at USD 2.22. Contract price in 2H Jan also see a mild growth, posting a rebound for the first time in recent half year. 512Mb and 1Gb module both posted a sequential gain of 3.09%, reaching USD 0.91 and USD 1.81 respectively.

The recent firming of DRAM prices is mainly because of a temporary increase in demand in the run-up to the Lunar New Year holidays next month. The possibility of price plunge is low according to the price environment recently and the outlook for 2Q08 will be more promising. It is predicted that with the new Vista operating system coming out, PC load will be spurred to upgraded, stimulating the demand for DRAM, thus causing a possible tightness on the supply side. According to Pai Pei-ling, a vice president of the chipmaker Nanya, clients have come to talk about orders for 2H08, signaling an improvement for the market.

Although it is difficult for DRAM makers to get out of red in current DRAM price environment, if price rebound bottom can be confirmed, at the some time, DRAM makers continue to make effort to step up in the process yield rate, it is possible to make profits.