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DDR2 memory price goes up

All those production cuts paid off
Tuesday, 6 January 2009, 15:22

THE SPOT PRICE of DDR2 1Gb eTT chips has finally gone up after dropping down the loo for most of last year.

According to DRAM Exchange the price has increased from the lowest 0.59 USD to recent 0.92 USD, a range of 56 per cent since mid December.

The price of DDR2 667 Mhz 1Gb chips also rallied from 0.58 USD to 0.78 USD with the range of 34 per cent.

The reason for the sudden boom in prices is the fact that Taiwanese DRAM vendors slashed back on production and kept a large number of chips out of the shops.

PSC cut back on capacity cut in September, Elpida, Promos, Nanya, and Inotera all followed, and managed to get the total worldwide production of DRAM down by about 20 per cent.

However all is not jam for the DRAM vendors. They still have those OEMS demanding ever cheaper products and the contract price has been sliding faster than a bucket of eels performing Torvell and Dean's greatest hits on ice.

Most PC OEMs had already cut back on shipment targets downward and DRAM Exchange thinks it might be as grim as negative growth.

Bean counters think that more production cuts are likely. Taiwanese vendors such as PSC and Rexchip will delay their 50nm process schedule and only proceed with the 65nm switch to keep competitive.

Nanya and Inotera will switch to Micron's stack technology, they may adopt the technology migrations with more steps such as taking 68nm first and later deciding the 50nm process depending on the market situation. µ

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Comments
Just another ploy to screw the customer

This is just another way for the industry at large to screw the consumer. They have reduced production not because they couldn’t pawn-off the cheap chips on the open market but because of greed and a desire for a ridiculously healthy bottom line just like the oil industry. Here in California corporate farmers do the same thing to drive the price of crops up; they will plow under 2 fields of crops for every 2 they actually harvest to ensure high premiums for their blessed fruits and vegetables.

posted by : Slice, 06 January 2009 Complain about this comment
Doesn't anyone see a problem?

Does anyone else see a problem with deliberatly stagnating technology?

I also tend to agree that most of our economic misfortune is due to companies being to damn greedy

posted by : John, 06 January 2009 Complain about this comment
Eeeeerr.....

What, Cartel and price fixing laws do not apply here?

posted by : McBee, 06 January 2009 Complain about this comment
They learned well

This isn't the first time the memory men have done this. Heck, if a guy were a conspiracy theorist, one might think that they just want a slice of the pie made of money. After all, we just spent the better part of a year on the business end of OPECs gun of inflation. So, if a must-have commodity like fuel can enjoy a little self-induced inflation, then why not a (mostly) luxury item like PC memory.

posted by : Khaotic, 07 January 2009 Complain about this comment
some guy

1.it sucks when companies do this

2.i dont know where you got this information from, a quick 1 minute real world test shows that memeory prices have not gone up, http://www.newegg.com/Product/Product.aspx?Item=N82E16820134636

3. memory is so cheap that there needs to be 4 gigayte sticks being made now or well be stuck at 2/4 gigs of memory forever

posted by : mike, 07 January 2009 Complain about this comment
DDR2 selling at a loss?

from my understanding DDR2 is selling at a loss atm. and the price has been dropping due to large stocks and small demand.

here's a graph with the evolution of DDR2 prices:
http://www.hardware.fr/news/10028/ddr2-chute-50-1-mois.html

posted by : z, 07 January 2009 Complain about this comment
@mike

You missed a word in the article, or mis-read it. It is not said that the "price" of DDR2 has gone up. It is specifically said the "spot price". Check out what the spot price is and you'll see where you misunderstood.

posted by : Pascal Monett, 08 January 2009 Complain about this comment
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