Samsung, Hyundai to increase price of DRAM
electronicnews.com
Jun 09, 2000 --- Samsung Electronics and Hyundai Electronics have proposed increasing the price of 64Mbit DRAM by 5-10 percent, as spot market prices continue to mount to $6.87-$7.21 for 64M (8M x 8) PC100 SDRAM, Electronic Business Asia, an E-inSITE affiliate, reports.
Price increases of $10 to $11 for 64Mbit DRAM would come into effect in June for leading OEM customers, added company spokesmen.
?As a result of surging demand, Samsung has only 1-2 weeks of supply, far below the normal inventory level of 4-5 weeks,? said Chon Byung-seo, a Daewoo securities analyst.
Samsung?s supply will get even tighter as local PC makers and handset makers scramble to stockpile DRAM chips, in anticipation of a tight supply that would further push up DRAM prices later this year.
?'If there are four million units of 64Mbit DRAM allotted to Hyundai and Samsung in total, for instance, the leading PC maker TriGem and the mobile handset maker Samsung Electronics are together walking away with at least 1.8 to 2.2 million units each,? said Joe Gyu-Dong, general manager of Sinsung Semiconductor, a local distributor. ?As a result, local distributors are left with 20 percent less allocation than last year.?
Intel?s decision to lower CPU prices spurred sales of high performance computers and raised the demand for DRAM, said Chon Byung-seo. He forecasts that a 30 percent increase in DRAM chip prices will bring Samsung Electronics and Hyundai Electronics $1 billion more in profits for the first half of this year. |
