PCB News   PCBA News  Indium News

Spot market DRAM prices fall in China

High inventory levels and weak demand meanDRAMpricesaredroppingin China

By Jim Carbone -- Purchasing, 9/17/2008 8:40:00 AM

Now is the time to buy dynamic random accessmemory(DRAM)chipsinChina,  according to researcher iSuppli,whichsaysthatpricesare failing because of weak demandandhighinventorylevels, On thespot market, the average price ofa1gigabit (Gb)double data rate 2DRAM fell by 18% duringthefirstweek inSeptember, according to theresearcher, whoseespricescontinuingto fall for the rest of themonth.

China had been hoping for an economicboostfromtheSummerOlympics, but for the nation’s DRAMmarket,theeventactually hadthe opposite effect as there was adeclineindemandduring thegames.

“The games clashed with thetraditionalsummerpromotionalseasonfor PCs in China, with manyconsumers gluedtotheir TVs andabsentfrom stores,” says John Lei,memory ICsandstorage systemsanalystfor iSuppli. “This caused salesmomentumtoslow.Furthermore, allthe IT (informationtechnology)equipmentrequiredfor the Olympicswas purchased yearsbefore theevent,meaningthere was no Olympicboost for DRAM demand.”

He believes DRAM demand will recover asanotherroundofcomputerbuying kicks in. Most of the constructionofnationalITfacilitiesin China had been completed prior totheOlympicsandmost PCs nowin use at these operations are at leasttwotothreeyears old.These systems will need to be replacedorupgraded,Leisays, whichwill mean increased demand aheadforDRAMandothersemiconductors.





Link: WinWinTech  PCB PCBA Barium  Strontium  Indium NPCC