Dramurai stock up on inventory

BIG DRAM makers went into a product dumping frenzy on the spot market in the last couple of weeks. The move was a cynical bid to make their Q1 figures look a tad healthier, but manufacturers are now stockpiling to avoid exposure to big losses in Q2 if supply still stays ahead of demand.

Industry watchers reckon the Dramurai are just manipulating the market to create the illusion of shortages and that if demand doesn't take an upturn by the middle of Q2, they will again resort to panic dumping.

Powerchip Semiconductor had offered a price protection policy for its customers, offering compensation if spot prices dropped below buying prices, but has now withdrawn the scheme to protect its own cash flow. µ

L'Inq
Digitimes