DRAM prices to rise in Q2

TODAY'S the day when all unusual stories should be treated with suspicion, but the Wall Street Journal has reported that Elpida Memory and Nanya Technology want to raise DRAM prices by around 20 per cent.

Japanese Elpida is reported as saying that it will try for higher prices when it negotiates Q2 deals with PC makers. It appears that despite over demand DRAM makers reckon it is time for a turnaround.

The WSJ quotes An Seong-Ho, an analyst at Hannuri Investment & Securities, as saying: "Memory-chip prices are expected to bottom out in the second quarter. Once spot prices rise, chip makers can negotiate to raise their contract prices as well."

But then it also quotes Joyce Yang, a director at research firm DRAMeXchange as saying "Fundamentally, there is no reason for prices to go up. If Elpida wants to raise prices 20%, it's likely that customers will go to other suppliers."

And if that wasn’t enough, Samsung is saying that NAND prices are more likely to rise in the second quarter because of higher demand.

So the whole thing might just be wishful thinking. µ

L'Inq
WSJ (sub required)