DRAM market shows small signs of recovery

THE PLUNGING price of DRAM chips has hit rock bottom and is set to improve slightly, analysts at Isuppli said.

According to Nam Hyung Kim, principal analyst for memory at the firm, DRAM suffered a 70 per cent price decline between January and the end of June.

But in the first half of July, OEM prices showed something of a rise, although Kim said he's cautious about overstock levels of memory.

While OEMs are carrying three to four weeks of DRAM stock, the spot market is flooded with supplies. But, said Kim, because the manufacturers have a strong resistance to further price drops.

He warned that any recovery will slow when distributors sell of their stocks to try and make some money. They've been hanging on to stocks because they bought at a higher price than the modules are now selling for. µ