Smith Market Blog

Memory prices are rising


DRAM pricing has been rising quickly over the past weeks due to the combined influence of a number of factors: 

  • an uptick in demand from larger than expected need in China;
  • the introduction of Windows 7; 
  • recent and upcoming Asian holidays;
  • new forecasting methodologies at the chip manufacturing level; and
  • the expansion of DDR3 production at the expense of DDR2 production.

This has resulted in higher contract prices all around and a large rise in open market pricing - especially on DDR2-800 (PC2-6400) items. For DDR2-800, contract prices have increased about 20-25% and open market pricing approximately 30% since mid-August, with most of that increase occurring since September 1.

Riding on the heels of DDR2, DDR3 prices, after softening in late August, have rebounded by about 3-5% since September 1.  Upward pressure on both DDR2 and DDR3 pricing is expected to continue in the coming weeks. 

Todd Banker, Memory Commodity Manager
Written on Friday, 25 September 2009 00:00 by Todd Banker, Memory Commodity Manager

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