Current supply of specialty DRAM (SDRAM) has fallen 5-10% short of demand, according Etron Technology chairman Nicky Lu. Lu said he is fairly optimistic about the market through the end of this year, adding that prices for the chip will continue to rise as supplies remain tight amid strong demand.
Lu estimated prices for SDRAM chips, which are mainly used in consumer electronics and home appliance applications such as digital TV and HDD, will rise 10% in the second quarter of 2010.
Etron's SDRAM chips are available in densities ranging from 16Mb to 512Mb, and products built using 90nm and 70nm processes account for more than 50% of its overall SDRAM shipments, Lu added.
According to industry sources, SDRAM quotes have recently been pushed up by more than 30%. Major memory chip vendors have seen their capacities fully booked on strong demand for commodity DRAM chips, leaving little room for them to take additional orders for niche parts, the sources indicated. As a result, the current supply of SDRAM chips is unable to catch up with the increased demand.