Contract quotes for DRAM packaging and testing services have been facing downward pressure, and are likely to decline over 10% in the third quarter of 2011, according to a Chinese-language Commercial Times report.
With DRAM prices having dropped on concerns of oversupply, chipmakers have been negotiating with their backend partners for a 10-20% cut in prices for the third quarter, according to the report. The talks are still ongoing, but DRAM makers seem to have more bargaining power, the report said.
Memory IC packaging and testing firms Powertech Technology (PTI) and Walton Advanced Engineering recently remarked that their revenues for the third quarter of 2011 would see flat to low-single digit growth sequentially, compared to larger increases seen for the same quarter in previous years.