RAM prices on the rise

RAM prices on the rise

DDR2 memory up 25 per cent and likely to increase again

DDR2 prices have leapt 25 per cent in the past fortnight and could go up even further in July.

CEO of RAM module-maker, OCZ Technology, Ryan Petersen, said in a blog that Taiwan's Powerchip Semiconductor had reduced its weekly output of chips, leading to a recent price hike that had already hit the local market.

Confirming the hike from a local perspective was Plus Corporation managing director, Nigel Fernandes.

"RAM had dropped and was at a good price point two weeks ago, but now it's gone up 25 per cent," he said. "It's across the board from all the vendors like Kingston, Corsair and the more generic ones."

While the recent price hike might have generally taken RAM back to where it was before its recent mini-drop, Petersen gave voice to industry speculation that Powerchip Semiconductor might be holding inventory.

Other speculation centred on the RAM maker swapping fab capacity to higher density parts or implementing previously scheduled new die shrinks - either of which could ultimately lead to further price hikes.

"With the major Intel CPU price cuts coming next month, you can be sure demand for more memory in the channel will go up this July," he wrote. "And we all know what happens when demand goes up with low supply."

Plus Corporation's Fernandes remains unfazed.

"Two or three years ago when RAM was $200 a stick, a 10-20 per cent swing was significant," he said. "Now, when I'm paying $39 a stick, up from $35, the cost is just absorbed into the price of the system. We'll just watch it and see how it goes."

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