DRAMeXchange: DRAM demand grows mild but high-density Flash reports enlarged drops
TAIPEI, Taiwan ¡V Dec. 20, 2005 ¡VDespite demand did spurred demand growth from early December amid the soon coming Christmas impact, DRAM supply trended in a divergent mode as chipmakers found the rapid price drops had edged chip prices to their cost bottom. Demand was encouraged by the growing tight memory supply at the spot market over the week December 13-20 with some speculative transactions being observed.
DRAMeXchange observes that prices of mainstream DRAM chips remained flat during Dec. 7-13 with module houses started to collect parts. As prices rebounded last week, most traders and distributors hold their inventory and the speculation demand had boosted prices grow further on Dec. 16 2005.
Supply of eTT (UTT) chips and the Hynix made 512Mb 64Mbx8 chips showed particular shortage last week. The major domestic eTT chip supplier who rejected to sell chips under US$1.85 since early December have stimulated memory buyers to collect those available chips which quoted below this price tag from the market, thus boosting related prices up almost 9% sequentially from US$1.86 to US$2.02.
DDR 32Mbx8 400MHz has been up from US$2.0 to US$2.11 from Dec.14 to Dec. 20. DDR 512Mb 64Mbx8 was up from US$3.85 to US$4.16. Marketers showed more interest to source for DDR2 chips, as evident in the stable spot prices of both major and NMB (non-major-brand) chips prices. Major and NMB DDR2 512Mb chip prices were stabilized at US$3.72 and US$3.03 respectively on Dec.20.
Encouraged by the upward pricing trend for both DDR and DDR2 chips, Samsung ramped up its supply of SDRAM chips including SDRAM 1Mx16, 4Mx16 and 8Mx16. However, demand was not pick up significantly with transactions volume turned even lower.
Ample 16Gb NAND Flash supply drags price down further
NAND Flash spot prices keep heading south last week with prices of low-density parts slowed down but the high-density 16Gb enlarged. Spot prices for 1Gb slipped 2% at US$7.54; 2Gb slipped 1% at US$14.76; 4Gb slipped 1% at US$25.98; 8Gb slipped 2% at US$44 and 16Gb slipped 5% at US$74.56 on December 19.
Memory makers keep growing demand last week. OEMs who aim to grab the last batch of orders that they might land before Christmas boosted pushed them to source for the low-density parts (4Gb and below) amid the continuous price drops at these segments. Spot prices were once being boosted, thanks to the urgent inquiries from these vendors. However the price ups scared away demand immediately and pot prices were then once again forced to lower to accommodate demand.
The ample 16Gb NAND flash supply dragged related spot price down as much as 5% at US$74.56 last week, versus the previous 3.9% sequential drop. This price level is set even lower than the contract quotes that some smaller scale customers obtained and this level is edging to the price range of second tier players¡¦.
DRAMeXchange foresees NAND Flash spot prices to slide further as most NAND Flash makers and module houses set their deal date earlier in December and attempt to lower inventory by releasing more stocks. Some chipmakers may even ship unpacked chips in wafer form. Under the severe price pressure, only those OEMs who place urgent orders for low-priced chips or those demand for immediate delivery shipment could be spot at the market.
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