DRAM price breaks $12
The price of 64M DRAM (dynamic random access memory) chips continued its upward streak Tuesday, soaring to $12.75 on the U.S. spot market just five days after breaking through the $10 mark.
According to industry sources, the chip was being traded between $11.92 and $12.75, almost triple the year's lowest price of $4.60.
The most widely retailed 8M x 8 PC-100 chip rose by $2.48 from Sept. 2, to be traded at a high of $12.75, when the U.S. spot market opened Tuesday after a three-day holiday closure.
This is the first time for the price to exceed $12 this year and price hikes appear to be accelerating in nature. It took a week for the price to rise from $8 to $9, three days to jump to $10 and only two days to pass $12 mark (taking into account the market closure).
Industry watchers expect this trend to continue for some time. The supply of the chip is currently falling short of demand, as Korean chip makers have reduced their production amid a restructuring drive. In addition chip production in Taiwan has yet to recover fully from the impact of a blackout in late June.
In contrast, semiconductor demand is brisk because of low-priced PCs being marketed and consumers willing to replace PCs over concerns about the Y2K problem, industry watchers say.
The price will continue to climb till the end of the year, then stabilize around $10, they predict.
Korean chip makers are expected to rake in huge profits as production costs stand at around $5.
Some watchers have voiced concern, however, about further hikes in the 64M DRAM price as it may lead to demand moving toward 128M DRAM chips, which are currently traded between $16 and $18.
Updated: 09/09/1999 |
