According to market research firm DRAMeXchange, aggressive price cuts from PC players like Intel have frozen DRAM demand for the second half of June. 

Research from DRAMeXchange today reported that DDR spot prices trended weakly from June 13 to June 20, as module houses and distributors had sufficient pre-stock inventory on hand.

DDR2 suppliers are encountering pressure from players in the PC world to drop prices, because several Taiwan-based chipmakers have ramped up their output.

The firm's indicator of DRAM output value, DXI, fell by 16 points and closed at 3,323 on June 20, reflecting the weakening DDR2 price trend. Overall, DDR prices dropped within a 0.5 percent range; DDR 256Mb 32Mbx8 400MHz dropped to $2.39, while the same-specification 512Mb closed at $4.84.

Also, DRAM contract prices show weakening signs for the second half of June. DRAMeXchange said that the low-range of DDR prices has been shaken by aggressive price reduction requests from PC OEMs, while, overall, DDRs are in short supply. The price drops of DDR2 remain unchanged at a drop rate of 4 percent to 5 percent.

Overall, the firm said, DRAM demand remains minimal; PC demand has been postponed since Intel forecasted its upcoming July price reduction. The influx of stock amid chipmakers' mid-year financial pressure further strained prices, the firm added.

However, better times for the industry are ahead, DRAMeXchange asserted. The firm anticipates DRAM prices to trend upward after August, when, it said, consumers will resume interest in the market. But the firm warned that the growth momentum should be more limited than the traditional seasonal upturn in Q3, due to the continually growing supply of DRAM.

By: DocMemory
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