Prices are expected downward for coming month-end.

:: Good news is there is no particular bad news this week.

Motherboard shipment figure is expecting down around 15% MoM. Asian markets haven't found mass Hynix products dumping on the spot market yet. (Due to US and Euro's tariff issue, marketers original expect Hynix will move more products into Asian open market. Taiwanese DRAM companies were banding together against Korea govt' subsidy). Month-end effect hasn't materialized yet. Although Mosel's finance situation is still seeking for money, they do know "lower chip prices won't cash enough to solve the problem". Prices should trim off a little bit since there is really no good news so far, however, we also believe the potential prices holding situation on DDR chips could sustain since channel inventory for DDR are still under control situation. On the other hand, SDRAM prices are overshooting too much, marketers will not appreciate in SDRAM prices.

:: Month-end sentiment begins to appear.

As time approaching to month-end, even we haven't seen big volume chips moving out under DRAM makers' inventory pressure, market sentiment already turns downward. Marketers are expecting the volume shipments to the particular buyers will be settled soon, and later we can find all available volumes chips on the spot market with lower prices. Golden week vacation in China has been canceled due to serious SARS, the pre-stock demand for that is also gone with wind.

:: Intel cut down P4 CPU prices.

Intel just lower P4 CPU prices down on Apr. 21th. This time is more mobile CPU prices cutting down from 10~38%. Next month, there will be another prices cutting down on desktop CPU. However, marketers don't expect the immediately increasing shipment in PC section during this slow season. In the short-term, memory spot market wasn't effected by that at all. Price for new FSB 800 MHz P4 CPU, which is still on hold for debugging, is setting at $417. Meanwhile, 17" TFT LCD panel prices are also indicated in the downward, but suppliers are trying to raise 15" panels' prices. Overall, we have seen PC industry are trying to lower price to seduce demand picking up, it seems not working well during this sluggish demand season. But hope it will improve soon.

:: P4 FSB 800MHz supporting chipsets' schedule.

Intel 875P already began shipment this month; prices are $50(w/o RAID) and $53(w/ RAID). 865 serial chipsets already delivered to motherboard companies for preparing next month's official launch and shipment, prices are setting around $33 level. VIA's PT800 and PT880 (renamed from PT400 and PT600) will begin to sample in May and prices are setting around $26~$27. SiS 648FX can begin to mass shipment at the end of Apr. but dual channel supporting chipset SiS 665FX and SiS 661FX are planning to mass production on 3Q. Prices for SiS are also setting around $26~$27 level, at least $7 less than Intel's official prices. Ali just got Intel's license for P4 FSB 800MHz recently, will be able to deliver supporting chipset on next quarter.

DRAM marketers are putting expectation on those new chipsets (especially on Dual channel spec.) to boost the demand up. However they also realize there is no real sharply taking off on DRAM demand before 3rd quarter. But on the 2nd quarter, since there are new chipsets marketing events, market situation shouldn't be always dumb.