An up tick in the spot market price for dynamic random access memory (DRAM) chips at the end of last week could be the first sign of a recovery in the market, said some industry observers, although others remain cautious after nine months of continuing price declines have ravaged the financial health of the chip makers.
The spot market price for bellwether 128M-bit DRAM chips languished around record lows of $US4 per chip for most of last week. Although in Asian trading the price had risen to around $4.25 per chip for devices from brand name makers, according to data from market research company Independent Commodity Information Services, London Oil Reports (ICIS-LOR).
"From what I saw, there was some interested buying from the trader side," said Steve Tan, a DRAM market analyst with ICIS-LOR in Singapore. Still, Tan said he remained downbeat on the market despite the recent price increase, as there were no real signs of support for the higher prices.