Viewing that spot market prices for 2Gb DDR3 have fallen below US$1.20, some Taiwan-based DRAM makers are currently evaluating measures to stop prices slipping further including the possibility of cutting back their production, according to industry sources.
Taiwan-based DRAM producers previously carried out production cutbacks between late 2008 and early 2009 to offset losses resulted from weak PC demand and falling ASPs.
With DRAM prices having crashed down below cash cost levels, Taiwan-based suppliers have stepped up efforts to shift to more advanced process geometries with major players scheduled to ramp production using 30nm by the end of 2011, the sources indicated. But 40nm will still be their major process technology for all of 2011, the sources said, adding that the cash costs per die for 4Xnm-made 2Gb DDR3 is about US$1.50.
Compared to chip-fabrication technologies adopted by industry leaders such as Samsung Electronics and Elpida Memory, Taiwan-based DRAM makers are still lagging behind by at least one generation.
spot prices for branded and effectively tested (eTT) 2Gb DDR3 chips dropped further yesterday (July 12) to US$1.34-1.39 and US$1.17-1.31, respectively. In the contract market, prices are expected to continue to head south in July to reflect softening spot prices, the price tracker said.