06.06.2001
DRAM prices shoot up for the first time since March

• SDRAM prices jumped yesterday, the first time since March 2001. 128Mb reached US$2.55, up 0.39% DoD, and 64Mb US$1.40, up 0.71%, according to DRAMeXchange. However, 128Mb DDR SDRAM prices continue to decline, closing down 4% DoD yesterday at US$4.23.

• In the US, Micron's Crucial website reported a flat 128Mb SDRAM web price yesterday, while its 64Mb SDRAM dropped 11.5% DoD. Micron's DDR prices declined between 5-11%. --Industry sources cite Computex as a major demand-driven reason for the upturn. Meanwhile, Micron's threat to pursue anti-dumping lawsuit against Taiwan DRAM makers and Hynix's fight against counterfeit Taiwan DRAM are rumoured to be fueling the supply-driven price surge.

• Intel's 845 chipsets, the chipset solution for Pentium 4 (P4) which supports SDRAM, and P4 SDRAM motherboard samples are on display at Computex. The current price premium of RDRAM, the only DRAM the P4 platform currently adopts, is 100% over SDRAM. Therefore, we believe the 845 rollout is a positive catalyst for SDRAM.

• VB Primasia Opinion: We remain concerned about the current DRAM surplus and lack of end-market demand. We believe, as with the November 2000 and March 2001 upswings, the current resurgence will be short-lived. Moreover, DRAM manufacturers' losses will continue to grow.

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