DRAM chips contract prices declining trend is expected to end in the first half of January as a result of production cutbacks, according to industry watchers.

Nanya recently stated that the company has scheduled a cutback in its production by 20-30% in January, but added that the company plans to proceed with its process migration plans. Pai said he believes DRAM contract prices are set to raise because PC OEMs are warming up new procurement due to easing inventories.

PSC earlier said its production would be trimmed another 20-30% in January. Industry watchers estimate that overall DRAM supply is expected to shrink more than 30% this month, which would ultimately help lift DRAM contract prices.

ON the other hand, world largest DRAM maker Samsung indicated that 2009 CAPEX will be trimmed by 50% aiming to cut production and ease the overcapacity in the market.  

By: DocMemory
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