04-17-99 Memory makers to benefit from stabilized chip prices
Domestic manufacturers of dynamic random access memory (DRAM) chips will likely reap higher than expected profits as their efforts to stabilize memory chip prices are paying off, industry sources said yesterday. Unit prices for 64-megabit DRAMs, which now represents the memory chip market mainstay, fell to the $7 range in March from above the $10-level. But they have rebounded to stabilize at around $8.
"Prices for 64M DRAM chips vary according to models on the spot market, but they appear to have stabilized at between $8 and $10," said an official at Samsung Electronics Co. He added that 16M DRAM prices have also steadied at $2.3 to $3.3. The chip industry earlier forecast prices for 64M and 16M DRAMs will hover around $7 and $2, respectively.
Analysts attributed the price stabilization to the decline in PC producers' chip stockpiles, combined with solid demand for PCs worldwide. Industry officials said domestic chipmakers will receive higher profits than earlier expected as production technology improves efficiency.
"Due to the prolonged slump in DRAM prices, local chip manufacturers sought to improve output efficiency. As a result, production costs are expected to drop soon," said the Samsung official. Despite the stabilization in prices, questions still linger about the prospects of an extended recovery. Analysts said the public's unabated thirst for less-expensive PCs also continues to present a problem.
"Demand for memory is not as strong because high-performance microprocessors aren't selling very well," said an official at a local PC manufacturer. (NIS) |
