The article is titled "DRAM contract prices slips 5% in 1HJun, hopes for a price rebound may occur in July；Taiwan’s miCARD to offer more choice" and overshadows an industry whose MO just seems hampered almost monthly with falling prices. It seems as though it is getting to the point that some of outsiders are starting to wonder if the commodities and chemicals used to make chips somehow cost more than the chips themselves, even though it more of a joke than a fact.
Spot price went up last week on lack of new DRAM chip supply, while contract prices tumbled another 5%. It is projected that after the 2007 Taipei Computex draws to a close, prices will have a chance in experiencing a rebound. Elpida’s CSO has suggested his bullish view to 2H07 and he anticipate supply may tighten in 2H07.
Spot prices for 512Mb 64Mx8 DDR2 rose 13.7% to US$1.74 and original chip prices rose more than 7% during the last week of May. This appears to be noted as an inventory price change rather a demand-driven price change. Some special deals were signed at lower prices ahead to take care of excess inventory at DRAM makers. The group notes that commodity DDR2 chips are expected to decline 15-20% because of Korean chip-makers output in July. NAND Flash spot prices looked stable to higher for the reporting periods.
You can read the article and see the tables to view the actual pricing metrics for the period.
Jon C. Ogg
June 6, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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