DRAM contract price increases 5-10%

Although the DRAM spot market price is around US$1 per gigabit, the DRAM contract price in March has risen by 5%-10%.

Sources pointed out that it was expected that the DRAM contract price in March would be much higher than it is now because many investors are concerned that Elpida's withdrawal from the DRAM industry may result in a decrease in supply. Sources said that, however, the end market demand continues to slow, so that PC OEMs no longer replenish inventory, resulting in March prices may be lower than expected growth.

Chip suppliers are still negotiating with their own OEM customers for DRAM quotation in March. OEM customers generally refuse to accept a price increase of 10%. OEM customers claim that DRAM demand in the market is generally insufficient.

The DRAM spot price, which was previously reported by Elpida Corp.'s bankruptcy, surged past $1, but recently the price has shown signs of a slight decline.

The increasing demand for tablets has caused the traditional PC and notebook market to shrink. As a result, the DRAM market oversupply.