With PC end-user demand remaining weak and slow growth in DRAM content per PC, DRAM contract prices are likely to further slip in the second half of June 2011.
Data collected by show that 2GB and 4GB DDR3 modules were quoted at US$18.25 and US$35.50, respectively, on average in the first half of June, showing about 2.7% decreases compared to the late-May levels.
Prices for 2GB modules had climbed to US$19 in early May amid concerns over disruptions to the supply chain after the March 11 earthquake in Japan, as well as reduced supply from some major DRAM makers which experienced unsolved problems in migrating to 40nm-class technology. With concerns over the impact of Japan's quake easing and chip suppliers' improved yields on their 4Xnm processes, growth in DRAM contract prices seems to have lost momentum.
Due to a lack of demand, DRAM contract prices have come under downward pressure since the latter half of May, DRAMeXchange indicated. PC OEMs are cautious about building up their stockpiles.
At the spot market, prices for 2Gb DDR3 chips have slid to US$1.60-1.70 which is 15-20% below the price level at the contract market, according to industry sources. The sources believe that contract prices will continue to be dragged down by low spot prices in late June.
Several DRAM module makers are already being forced to sell their products to PC OEMs at as low as US$16, the sources revealed.
In addition, the rise of tablet computers, which use less DRAM per device, has led to slower-than-usual growth in memory content per PC, the sources indicated. A tablet has up to 2GB of DRAM while a conventional PC comes with 4GB of DRAM.