All the usual factors are now in place for a potential shortage of random access memory, especially the new PC-100 DRAM.
According to David Whitney, Asia-Pacific business development manager for memory supplier Viking Components: "Memory prices have stabilised over the last six weeks, but all the conditions are in place, which, over the last twenty years, have led to shortages and price hikes in the worldwide memory market." Whitney said that this means there is the potential for a return to hyper-inflated RAM prices.
Whitney explained that consolidation in chip manufacturers, a decrease in the investment in new chip manufacturing plants over a period of two to three years, and the divergence in RAM technologies, all point to a shortage in supply, and the Australian IT channel should take note.
He claimed that, in the short term, there may be a shortage of PC-100 RAM, because that's the technology with the major spike in demand, and this will continue as the BX motherboards (the motherboards that need PC 100 Ram) become the standard.
"In the long term however," he added, "there will be several competing memory technologies [such as EDO, Fast page, SDRAM and Rambus] in the market.
So far, only a few chip producers have the vast range to cover all the technologies in demand."
Viking memory products are distributed by Norse Technology and PC distributor CHA.