DRAM Prices Expected to Peak in September, DRAMeXchange Proj

[Apoptosis]

DRAM Prices Expected to Peak in September, DRAMeXchange Projects

August 14, 2007---While the hot PC selling season has arrived, end demand from the spot market has remained relatively weak. A perfect example is the lackluster sales seen in China during July, which traditionally is a period of high demand. Although conditions have improved recently in the spot market when compared to the previous month, prices have not experienced an upswing.

In the contract market, prices rose 3%~5% in 1HAug. In the wake of the upturn in PC sales, the stronger OEM pull-in has helped drive up the prices. DRAMeXchange projects that the aggregated shipment figures of both DTs and NBs will reach 69 million in 3Q07, a QoQ of 15%. After paying visits to several PC OEMs, DRAMeXchange has also found that the mainstream DRAM content per box is by average 1.2~1.4GB--an indication that the contract market demand has been increasing on a QoQ basis.

The price differences seen in the spot and contract markets can be attributed to the following factors:

1. Amid the plunging DRAM prices in Q2, some DRAM and module makers have accumulated a significant amount of inventory. The market prices are often disrupted by reports of DRAM chips being sold at relatively cheap prices.

2. In order to effectively compete with other OEMs in terms of specification, PC OEMs have boosted the DRAM content per box to much higher levels. With PCs equipped with more DRAM memory, it has dampened the requirement for further upgrades.

3. Rising consumer prices have driven away consumers from purchasing PC related products. Some retailers in China have pointed out that the jump in consumer prices was the main culprit behind the sluggish DRAM sales in July.

In the forthcoming months, DRAMeXchange believes the Samsung incident will affect the original DRAM and NAND Flash capacity allocation plans of Korea makers in 2H07. Coupled by the ongoing transition to the 70nm process by relevant manufacturers, DRAM prices are expected to peak in September. Fortunately, the subsequent price downtrend should be softer, as some of the capacity will be switched to NAND Flash.

About DRAMeXchange
DRAMeXchange is a global leading provider of market intelligence, in-depth analysis reports and consultant services on major electronics components. Our company consists of 2 major research divisions---DRAMeXchange and WitsView, which cover the DRAM, NAND Flash, PC and display research sectors. You can learn more about DRAMeXchange by visiting http://www.dramexchange.com

In the year 2000, the company started to deliver market intelligence services under the name of DRAMeXchange technology. This included the current business environment, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

To further expand its research, DRAMeXchange acquired LCD research institute WitsView in 2006 to provide insights on the display industry.

About WitsView
WitsView is a subsidiary brand of DRAMeXchange, which provides prompt and credible market insights covering the quantitative pricing trend for both TFT-LCD panels and finished goods, industry updates and market intelligence. Founded in 2004, WitsView Technology Corporation is made up of a group of sophisticated industry analysts with years of experience, providing objective and strategic insights on the display industry. Additional information can be found at http://www.witsview.com