DRAM contract prices were close to the bottom in the first half of January. Prices are likely to remain flat or drop slightly in the second half of the month, and start recovering in the second quarter.
Early January prices for 2GB DDR3 modules fell 5-6% to average US$17 with quotes in the low range standing at US$16. Despite a continued downward trend, prices actually slid at a slower rate compared to declines of 10% or more previously.
Intel's recent launch of Sandy Bridge CPUs will help stimulate the transition of memory in PCs to 4GB and above. Meanwhile, the already-low DRAM quotes are also encouraging PC OEMs to increase the amount of memory in their products.
System OEMs are expected to begin building up inventory in the second quarter prior to the year's peak season. Contract prices will be buoyed by the rising demand, rising 20-25% in the second quarter, it estimated.
Nanya Technology recently remarked that DRAM pricing now has little room for further fall. Prices for the second half of January could stay similar to the levels in the first half, signaling actual demand from end-market applications is warming up, Nanya said.