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DRAM spot prices get boost from smuggling

It's an ill wind and every crowd has a sliver lining
Wednesday, 20 June 2007, 11:55
MEMORY WATCHER DRAM Exchange said spot prices of DDR2 512Mb chips bounced by 29.4 per cent between the 11th of June and today the 20th.

And it's all down to those wily people in the channel. The site said channel distributors in Shenzhen, just across the "border" from Hong Kong, like to pre-stock on their DIMMs and smuggle them rather than pay 17 per cent VAT the PRC imposes.

But the PRC are clamping down on the smuggling, so now the disties in Shenzhen are sourcing their chips from the spot market, causing a price boost.

But these chips are, er, still cheap as chips, with the DDR2 512Mb baby costing only $2.07. So the Dramurai aren't getting the Cristal out of cold storage yet. ยต

L'INQUEUE
DRAM Exchange

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