DRAM packaging and testing houses face price-cutting pressure from upstream suppliers that are feeling the severe impact of falling chip prices, according to a Chinese-language Commercial Times report.
The paper revealed that backend firms are still negotiating new prices with DRAM chipmakers. Prices are likely to fall by 5-10% sequentially in the first quarter of 2011, the paper estimated. The decline is relatively larger when compared to a sequential 3-5% drop in the fourth quarter.
Spot market prices for 2Gb and 1Gb DDR3 chips continued trending downward to average US$1.88 and US$1.10, respectively, during the afternoon trading session of December 27, according to DRAMeXchange. Meanwhile, prices for effectively tested (eTT) 1Gb DDR3 also slid to US$0.96 on average.