Memory update: Pricing and demand increases for 128x8 chips

USA: USA: Presenting Converge's Market Intelligence Report, August 2009.

The DRAM market continues to show signs of improvement. We are currently tracking increased demand from module manufacturers for 128x8 DDR2 chips, both in PC667 and PC800 speeds. Pricing has increased significantly over the last five months.

For example, the average price for a 128x8 DDR2 chip has risen from $0.85 in March to roughly $1.50 in the second week of August. There are mixed opinions on why the market has become so tight for these modules.

Many end users believe that DRAM manufacturers are squeezing the supply from the market in order to increase prices.

Some are claiming that their demand volume has remained steady throughout the past five months and there should be no reason for the market to heat up, while other end users are experiencing improving business conditions as we head into the second half of the year. All of this could also be leading to an increase in demand.

Either way, the market is steadily improving for both DDR2 and DDR3. The key to sustaining these improvements is to stay the course and avoid drastic spikes and dips in spot market activity. Any sign of inventory "dumping" will erase some if not all price increases in the memory market this year.

Memory update: Demand for DDR3 modules remains strong, with supplies limited

USA: As per Converge Market Insights, according to the major DRAM manufacturers, DDR3 demand has been on the rise over the last two months and supply is limited.

Sources claim that all DDR3 server DIMMs (dual in-line memory modules) are going directly to the Tier 1 OEMs as quickly as they can be manufactured, with lead times being quoted as far out as the end of October.

This may not appear like a long time, but given the state of the memory market for the past two years, any talk of a lead time is big news. The lack of supply in the spot market confirms that parts are becoming scarce.

While the DDR2 market remains flat, the DDR3 market is showing signs of life. Pricing is up about 15 percent to 20 percent over the last four weeks, and while there was no change in contract for DDR2, DDR3 pricing was up about 5 percent.

Converge anticipates that the DDR3 market will continue to show activity as we head into the busier build season. The notebook and desktop modules should also see a spike in demand in the coming months. Look for supply issues to occur with UDIMMs (unbuffered DIMMs) as well.

Memory update: DRAM market remains quiet, DDR3 inquiries increase

USA: According to Converge Market Insights, despite several contract price increases since the beginning of May, the DRAM market remains relatively quiet.

Module activity in the spot market remains absent; however, we are tracking an increase in inquires for DDR3 -- especially for server modules. Although there have not been any significant spot market buys for DDR3, there has been some concern regarding their supply situation for the next two to three months.

Spot market pricing for DDR3 is much higher than direct prices, in some cases as much as 10-15 percent higher. Converge believes that the box builders are increasing their output of systems with DDR3 memory for the upcoming build season.

The DRAM manufacturers aggressively priced DDR3 to speed up the adoption rate, and it appears to be stimulating some demand. There do not appear to be large quantities of DDR3 product available in the spot market, so this could be a development worth watching.