DRAM testing prices are currently under downward pressure amid declining DDR prices, according to a Chinese language Commercial Times report.

ThaiLin Semiconductor may cut its DDR testing prices 5-10% next quarter, though Powertech Technology is putting a more positive spin on the situation.

Spot prices for 256Mbit DDR have dropped to around US$2.50, according to the latest quotefrom DRAMeXchange and prices are forecasted to drop even further next quarter when the industry enters its traditional low season. Market observers even predict that spot prices will edge down to US$2.

As the market price continues dropping, testing firms are receiving more pressure to adjust their prices as well, a market source explained.

A ChipMOS Technologies affiliate company (ThaiLin) has admitted that customers have requested price adjustment this month but the company declined to agree to the proposed reductions, as the company is currently running at full capacity. However, with more price pressure expected in the second quarter, ThaiLin does not rule out a 5-10% price drop.

Powertech chairman DK Tsai, however, commented that a slight price adjustment is acceptable, though he qualified his statements by saying testing prices should not blindly follow the fluctuations in the memory market. However, if a price adjustment does not hurt the company’s profit potential in the long-run, short term adjustments can help maintain a “win-win” relationship with customers, he added.

By: DocMemory
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