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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (750)	3/5/2002 3:11:46 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

DRAM prices expected to continue to rise By Jack Robertson EBN (03/05/02 13:42 p.m. EST) DRAM purchasers can expect contract and spot market prices to continue to rise as demand from the computer sector and inventory replenishment eats away at supplies. In the spot market, 128Mbit SDRAM prices are approaching $5, more than double last year's rock-bottom level, said Andrew Griffin, an analyst at Merrill Lynch & Co. Inc., New York. Contract prices are expected to increase from between $4 and $4.50 to $4.75 to $5 for 128Mbit SDRAM, and from $4.50 to $4.75 to a range of $5.25 to $5.50 for 128Mbit DDR SDRAM, according to a report by Eric Ross, an analyst at Thomas Weisel Partners LLC, New York. ”While spot market volumes have thinned, our channel checks indicate that demand through the manufacturers' channel is strong and contract price increases should continue,” Ross said. Now that OEMs have burned through much of their excess DRAM inventory and the PC market is showing signs of a rebound, orders are climbing back, said Tom Quinn, vice president of sales at Samsung Semiconductor Inc., San Jose. “We expect the industry DRAM supply this year to increase by 40% to 45% in the bit growth rate. By contrast, demand may be up 55% to 65% in the bit growth rate,” Quinn said. A faster-than-expected ramp in DDR DRAM production is also expected to boost SDRAM prices. As suppliers shift their production mix in favor of DDR devices, it will lower single-data-rate supply, analysts said. But OEMs shouldn't get spooked just yet. DRAM supply of all densities will increase this year as vendors ramp 0.15-micron die shrinks, which will yield a greater number of DRAM devices, Griffin said. As a result, the price pinch for OEMs may ease later in the second quarter.