Elpida Memory foresees intensifying price pressure in the first quarter 2007 and estimates that overall prices will drop by 20%, according to the company.

Elpida recently delivers record sales and profits in the fourth quarter of 2006, attributing the strong records to capacity expansion at its E300 fab and more procurement from foundry partners. Cost reductions also contributed to profitability and prices of DDR2 stayed stable in the fourth quarter, the company said.

Although projecting a 20% on quarter bit growth in the first quarter of 2007, Elpida expects DRAM prices to reduce by more than 10%. 

By: DocMemory
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