Menu
DRAM prices slump to all time lows

DRAM prices slump to all time lows

The price of mainstream DRAM chips have slumped to all time lows as holiday buying slows and some companies begin to dump the chips.

The price of the most commonly used dynamic RAM (DRAM) computer memory chips have slumped to all time lows in the spot market, a great time for users to buy more.

The average spot price of the mainstream memory chip, 256M bit double data rate DRAM that runs at 400 megahertz, or DDR-400, fell to $US2.03 on Friday, according to DRAMeXchange, an online clearinghouse for the chips. The current price is just half of what the chips fetched at the beginning of 2005 and represents a drop of 7 per cent over the past two weeks.

The DRAM industry faces two main troubles, a glut of excess chips and waning demand because most PC makers have finished stockpiling the chips ahead of the holiday season. In fact, a number of industry players have been dumping their excess chips back onto global markets in recent days for fear prices won't improve anytime soon, according to DRAMeXchange.

The current price for the chips is also a danger to DRAM makers because it's nearing the cost of production. Goldman Sachs estimates that for companies operating older, 200mm (8-inch) chip plants, the cost of production is around $US1.90 per DRAM chip, while on new, 300mm (12-inch plants), the cost of production is around $US1.30 per chip.

DRAM chips, which retain data while a computer is turned on, are so common that they trade on open spot markets in the same manner as commodities such as oil and wheat. Chip prices tend to fluctuate in response to supply and demand, and in particular demand for PCs, where most DRAM chips end up.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Events

ARN Innovation Awards 2022

Innovation Awards is the market-leading awards program for celebrating ecosystem innovation and excellence across the technology sector in Australia.

EDGE 2022

EDGE is the leading technology conference for business leaders in Australia and New Zealand, built on the foundations of collaboration, education and advancement.

Brand Post

Channel Roadmap

The Channel Roadmap is a bespoke content hub housing strategic priorities from technology vendors for 2022 and beyond, partners can find the guidance on the key technologies and markets to pursue, to help build a blueprint for future success.

Show Comments