[World DRAM Price] Leading DRAM Makers Still Compete Below Cost
October 10, 2001 (TOKYO) -- DRAM prices are still on the decline around the world.
The 30-day rolling average prices of 128Mb DRAMs (PC133, 16 x 8) in the spot markets approached the US$1.5 level or even lower in the three major regions of North America, Europe and Asia.
According to a worldwide survey of DRAM prices by ICIS-LOR, an information service company based in London, Houston and Singapore, the rolling average prices of 128Mb DRAMs (PC133, 16M x 8) for the 30-day period ending Sept. 21 (Aug. 23-Sept. 21, 2001) for large-volume users were US$1.65 in North America, US$1.74 in Europe, and US$1.71 in Asia. In comparison with the previous week (the 30-day rolling averages ending on Sept.14), the prices decreased by 6.35 percent for North America, by 8.16 percent for Europe, and by 7.39 percent for Asia.
Regarding the prices of memory modules, the spot prices of 128MB DIMMs (PC133) declined by 2.12 percent to US$12.21 in North America, by 2.65 percent to US$12.69 in Europe, and by 1.69 percent to US$12.15 in Asia, from the previous period.
While word is getting around about production adjustments in such a loss-making situation, leading DRAM makers are still engaged in full-scale production. They are remaining in this exhausting competition for fear of losing their market share. Hynix Semiconductor Inc. of Korea, rumored to be the most undercapitalized, has been supported by its creditor group. There seems no prospect of an end to this competition.
Table: 30-Day Rolling Averages of 128Mb DRAMs (PC133, 16M x 8) Aug. 23-Sept. 21, 2001 (survey by ICIS-LOR)Area
Contract price
Week-on-week comparison
North America
US$1.65
-6.35%
Europe
US$1.74
-8.16%
Asia
US$1.71
-7.39%
*Week-on-week comparison is the comparison with the 30-day rolling averages of Aug. 16-Sept. 14, 2001.
Previous report: Sales of Direct RDRAMs Brisk in September
(Tamao Kikuchi, Nikkei Market Access) |
