Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: etchmeister who wrote (5722)	4/22/2008 9:49:05 PM
From: etchmeister	Read Replies (1) \| Respond to of 5867

With DDR2 1Gb prices at US$2.5, DRAM contract price will bounce back in June; Future SSD will Diversify its Development in PC Applications Published Apr.22, 2008 With DDR2 1Gb prices at US$2.5, DRAM contract price will bounce back in June. Price surge in low range Despite transaction is not strong, DRAM spot pricing sustained a mild upward trend last week. Prices posted a surge on April 21, as evident in the 5.32% and 6.69% single-day appreciation for DDR2 1Gb 128Mx8 eTT and 512Mb 64Mx8 eTT. As magnitude of growth is rapid, sellers thus being conservative to release their stocks. After experiencing the price correction in 2HFeb, the upward price trend observed last week is the strongest single-day appreciation recently. The growth is stem from anticipation of a demand warm-up, and sellers being reluctant to sell after seeing the price correction last for that long. Such a price surge is believed to be an indicator for a possible price recovery. Gradual contract price growth DRAM contract price posted an average of 3% sequential growth in 2HApr. Despite the trend in May is still unclear, DRAM makers reached a consensus that the upcoming seasonality should promise an upward trend during June to August, or even September. Besides seasonality impact, PC OEMs that bring forward their procurement in order to source 1GB module that is still prices below US$20, will be another demand driver. From supply perspective, a Korean maker may have its QoQ bit growth slows down due to lower-than-expected output from 6xnm. Inotera from Taiwan, at the meantime, is also expected to have lower output amid transition to 70nm. All these indicators will point to a drop in 1Gb DRAM supply. Major DRAM makers in Taiwan, including ProMOS, PSC, Rexchip and Nanya, all plan no additional wafer starts in 2H08 amid losses. Some others are also planning for supply cut. These plans indicate that DRAM supply growth will be weaken. And therefore price of DDR2 is likely to gain a 30% growth accordingly (512Mb from US$0.90 to US$1.25 and 1Gb from US$1.96 to US$2.50). Where from demand point of view, shipments of desktop PC is steadily growing and most notebook vendors are having shipments schedule on track, despite some are still being affected by battery shortage. Most notebooks are now equipped with 1GB or 2GB modules with majority of these modules built on 1Gb component. Most 512Mb components are just applied for 512MB module for sale in systems for emerging markets. Shipments of 512MB module in systems is low, where shipments ratio by GB base between 1GB and 2GB module is about 60% to 30%+. Future SSD will Diversify its Development in PC Applications The first-generation of low-cost PC, Eee PC 701, from Asustek raises eyebrows among consumers and competitors ever since its launch. The second generation, Eee PC 900, has been unveiled in Hong Kong on April 15. Eee PC 900 is more like an advanced version of the first-generation Eee PC. It supports both Windows (Windows XP and Microsoft Work) and Linux, a 8.9-inch LCD monitor and a larger SSD storage of 12GB. Asus keeps the Linux model because the system can have a combined storage of 20GB by adding the embedded 4GB memory. Eee PC 900 is powered by Intel Celeron M ULV 353 on a core frequency of 900MHz. An advanced heat dissipation design is also being made. The new model still adopts Intel 915G and ICH6 southbridge chip with built-in GMA 900 graphics core, supporting both DirectX 9 and Shader Model 2.0. By adopting the Unified Memory Architecture (UMA), a maximum of 128MB system memory can be reached. A noticeable difference in the two generations of Eee PC is 701 is built on SLC and 900 is built on MLC NAND Flash. Although MLC NAND Flash has a slower data write performance than SLC NAND Flash, cost concern still drives the transition. Currently Asus builds the MLC NAND Flash inside the computer, and utilizes controller IC to boost performance and balance the loss of data write performance. SSD is believed to appeared as an external card form in future low-cost PCs. It implies that system makers will only have their systems to carry basic functions, with a slot to reserve for memory extension. This approach not only enhances convenience, but also helps addressing cost concern and creating new business potential for system makers. In addition to notebook and sub-notebook, NAND Flash makers are believed to penetrate into PC segment via introduction of different types of SSD-like storage devices. More SSD are expected to appear in PC, blade server, mobile devices, etc. NAND Flash spot price recap In the SLC segment, price of 1Gb grew by 2.2% to US$1.90; 2Gb grew by 3% to US$2.71; 4Gb grew by 0.3% to US$3.76; 8Gb grew by 3.5% to US$7.61 and 16Gb grew by 1.3% to US$16.76. In the MLC segment, price of 4Gb grew by 2% to US$2.04; 8Gb grew by 14.8% to US$3.41; 16Gb grew by 5.1% to US$5.53 and 32Gb grew by 2.5% to US$11.72. dramexchange.com