Contract prices for DRAM memory received a boost in the second half of March 2011, amid concerns about a potential wafer shortage stemming from Japan's recent earthquake.
Late March contract prices for 2GB and 4GB DDR3 modules averaged US$17 and US$33, respectively, up about 3%. Prices turned flat in February after having slid over the previous four months.
In order to ensure chip supply, which reportedly is likely to be short of demand starting in May, PC and system vendors are more willing to accept higher prices, according to sources at DRAM makers. Prices will go up in April anyway as PC OEMs begin to rebuild their low inventory, even without taking into account the effects of Japan's earthquake on the chip supply chain, the sources said.
The earthquake and resulting tsunami which struck the northern region of Japan on March 11 has caused companies to shut down production within the area. Silicon wafer suppliers Shin-Etsu and Sumco are also among the affected companies.
Shin-Etsu is a major supplier for memory firms including Hynix Semiconductor, Elpida Memory, Powerchip Technology, Rexchip Electronics and ProMOS Technologies. Sumco's memory clients include Samsung Electronics, Micron Technology and Hynix. These companies, except Hynix and Elpida, all have multiple sources for silicon wafers.
There is also growing concern about possible interruptions in the supply of other materials such as bismaleimide traizine (BT) resin used to make DRAM chips, the sources said.