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DRAMeXchange indicates DDR2 eTT 1Gb securing at US$1.80 mark

22 July 2008 Semiconductors

Taipei, July 15, 2008 --- DRAMeXchange records that prices of 512Mb and 1Gb have dropped by 6.2% and 5.6%, respectively, during July 1-14. In the branded segment, prices of 512Mb 667MHz and 1Gb have been also dropped by 2.9% and 5.9%, respectively, in the same period.

DRAM price and transactions were weak due to gloomy economy, stricter probe actions over DRAM smuggling in China prior to the Beijing Olympics and consistent expansion at Rexchip. But note, prices of 512Mb and 1Gb DDR2 eTT secured at US$0.90 and US$1.80 mark despite price of these chips once dropped to US$0.83 and US$1.78 last week. The immediate transaction once prices touched these levels has justified our statement.

Contract prices of 1GB and 2GB DDR2 667 maintain flat at US$22 and US$44, respectively, in 1HJuly, marking a rest to the consistent upward price trend since April. Yet, there still exist a price premium as high as 19% (Contract price of 1Gb DDR2 667 at US$2.38/die vs spot price of US$2), a divergent price trend is still remained between the two market places.

According to DRAMeXchange's analysts, price negotiation between DRAM suppliers and PC OEMs has taken one more week as both sides did not reach a consensus over pricing because: 1. A Korean vendor has settled a month-long pricing in late May, with the settled prices 10% cheaper than average; 2, PC OEMs have started building up inventory from 2Q with some even having their inventory turnover staying at 6-8 weeks level.

Despite prices of most settled deals maintain flat, the Korean vendor that has settled a month-long contract before, still unable to raise its quotes. We therefore think price of cheaper parts likely to see a 5% increase in 2HJuly, with overall pricing to maintain flat.

About DRAMeXchange

DRAMeXchange is a global leading provider of market intelligence, in-depth analysis reports and consultant services on major electronics components. Our company consists of 3 major research divisions---DRAMeXchange, WitsView and LEDinside, which cover the DRAM, NAND Flash, PC and display research sectors. You can learn more about DRAMeXchange by visiting

In the year 2000, the company started to deliver market intelligence services under the name of DRAMeXchange technology. This included the current business environment, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

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