February DRAM contract prices up over 10%

DRAM makers have hiked February contract prices for PC-use DRAM by over 10% and consequently contract prices have risen to about US$20 for a 4GB DDR3 module and over US$11 for a 2GB DDR3 module, according to Taiwan-based makers.

The price hike comes in the wake of increases in spot market pricing for PC-use DRAM, to US$1.50 for a 2Gb DDR3 chip for example, the sources indicated. The hike in PC-use DRAM price was because DRAM makers have allocated more capacity for making mobile RAM and server-use DRAM and therefore the total capacity available for PC-use DRAM has decreased, the sources pointed out. Samsung Electronics has left less than 20% of its total DRAM production capacity for PC-use DRAM and SK Hynix has allocated less than 50% of its total capacity, the sources noted. Due to worries about short supply, PC ODMs/OEMs have been willing to purchase despite the price hikes, the sources said.

Contract prices for a 4GB DDR3 modules will keep rising toward US$25 if demand for mobile RAM and server-use DRAM remains strong and therefore production capacity for PC-use DRAM continues to be tight, the sources indicated.

Global DRAM production capacity: Percentage breakdown by application, 2012-2013
Application	2012(e)	2013(f)
PC	44%	32%
Server	18%	19%
Mobile RAM	22%	30%
Graphics	6%	7%
Consumer electronics	10%	12%

Source: Taiwan-based makers, compiled by Digitimes, March 2013