03.30.2001
DRAM makers may raise 128Mb SDRAM contract prices in April

• industry sources confirm that Samsung (Korea) is to raise its 128Mb SDRAM contract price to US$5 from US$4.4, with details to be finalized on 5 April. Micron (US) and Infineon (Germany) may be ready to make similar moves.

• Local DRAM makers, including Winbond (2344 'Hua Bang Dian') and Mosel (2342 'Mao Xi'), are reportedly planning to raise 128Mb SDRAM contract prices by 5-10%.

• Asian IC Exchange (AICE) yesterday quoted a daily price range of US$4.4 - 4.8 on 128Mb SDRAM. We hear the local spot market transaction price actually went as high as US$5.5 in recent days.

• We stick to our previous position (Tuesday, March 27 VB Primasia Taiwan Daily Highlights) that the current price spike is driven mainly by a short-term supply problem and is being magnified by the market's excitable response.

• We do not see end demand in DRAM picking up, thereby addressing the supply surplus. In addition, consensus still holds that the uptrend is only temporary, meaning that downstream manufacturers will be reluctant to take on higher contract prices.

• However, should key players such as Samsung, Micron and Infineon be able to effect price rises, we believe the upswing in the DRAM spot price has a better chance of sustaining through April.

LindaLiu@Primasia.com +886-[0]2-2547-8867