DRAM contract prices still rising

But not as much as in July

DRAM contract prices continued to rise again during the first half of August, according to the latest figures from online memory marketplace DRAMeXchange.

Prices didn't rise as much as they did in July, but the trend is still upward. The previous month was characterised by double-digit increases - this time round the growth was more modest.

In the chip market, 256Mb 400MHz DDR prices rose by up to 5.06 per cent, DRAMeXchange's figures show, followed by 128Mb 266MHz DDR at 5.04 per cent. The prices of 266MHz and 333MHz 256Mb DDR didn't rise as much, increasing only 3.73 per cent.

DIMM prices rose more consistently, with 256MB PC3200 modules rising by up to 4.82 per cent, 256MB PC2100 and PC2700 part prices increasing by up to 4.65 per cent, and 256MB PC2200 and PC2600 SO-DIMMs going up by 4.88 per cent.

As market watcher Gartner pointed out this week, the price rises are being driven as demand outstrips supply.

"This recovery is going to be based on lack of supply, not increasing demand," said Andrew Norwood, principal analyst with Gartner's semiconductor research group. "We have been here before, and if the DRAM vendors become greedy and increase production, the industry will quickly swing back into oversupply and prices will crash." ®

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