DRAM contract prices soar in 1H January

Contract prices for DRAM have risen about 10% in the first half of January, with 4GB modules quoted at as high as NT$17.50, according to DRAMeXchange.

Early January contract quotes for 2GB and 4GB DDR3 modules averaged US$9.75 and US$17.25, respectively, up 8.3% and 9.5%, DRAMeXchange disclosed. Average prices for 2Gb chips came to US$0.92 during the period, rising 10.8%.

Japan- and Taiwan-based DRAM makers continue to cut back their production of PC DRAM, while Korea-based vendors shift more PC DRAM capacity to non-PC memory chips, industry sources revealed. With the overall output slowing down, prices for commodity memory have gone up recently, the sources said.

Supply-side factors will continue to boost prices for PC DRAM until early February, the sources predicted. And if demand picks up, prices are expected to stage a solid rally, the sources indicated.

At the spot market, prices for 2Gb DDR3 chips have rebounded to US$1.20-1.30 recently, the sources observed.