Large-lot users are now charged 5.80 dollars to 6 dollars for 256M SDRAM, about 3% more than a month ago. Prices have been strengthening since last fall as DVD recorders, digital cameras and similar products have become increasingly popular, and during that time have jumped around 34%.

Another factor driving prices higher has been an increase in inquiries from consumer electronics manufacturers ratcheting up production ahead of the Athens Olympics. Manufacturers have gone along with higher prices in order to ensure that they can procure the chips in sufficient quantities.

Meanwhile, supply has been growing slowly as chipmakers continue to focus on DDR (double data rate) DRAM for personal computers, which account for more than 75% of the DRAM market. Consequently, most observers expect supply-demand conditions to remain tight and current pricing levels to be maintained for some time.

By: DocMemory
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