A-Data Technology has reached a long-term supply contract with an unspecified upstream vendor, under which it would pay a certain amount in advance for DRAM chips. The contract will be valid through November 30, 2012.
A-Data did not identify the supplier, but it has been speculated as being Elpida Memory.
A-Data chairman Simon Chen was quoted in previous reports predicting a tighter DRAM market in the second half of 2010, as Windows 7 would ignite a wave of PC replacements. Demand would begin to outstrip supply by 1-2% in the second quarter.
Elpida has inked outsourcing deals with Taiwan-based DRAM producers including Powerchip Semiconductor Corporation (PSC) and ProMOS Technologies, in addition to subsidiary Rexchip Electronics.