Contract quotes for DRAM chips continued to fall in the first half of August, hitting their lowest level so far in 2011.
According early August prices for 2GB and 4GB DDR3 modules averaged US$12.25 and US$23.50, respectively, down 15.5% and 16.1%. Prices for corresponding 1Gb and 2Gb chips were US$0.61 and US$1.31, respectively.
Despite recent speculation that Elpida Memory and its Taiwan-based partners have moved to cut back their production with an aim to stabilize prices, contract prices continued their downward trend in the first half of August. Samsung Electronics and Hynix Semiconductor, which collectively hold a more than 60% share of the DRAM market, still have no intentions of slowing production and consequently, prices have seen little improvement, industry sources have observed.
On the demand side, PC OEMs remain cautious about placing orders, the sources indicated. With inventory pressure mounting, chip suppliers lost all their bargaining power in negotiations with buyers, the sources said.
The sources expressed concerns that DRAM prices are unlikely to bounce back until 2012 under the current circumstances.