:: Cautious market sentiment leads to soft DDR strength

DDR chip price remains relatively stable this week. The phenomenon is soley attributed to a rally in 1H July leading to a cautious market sentiment and anticipation for a lower price in the spot market while the month-end is approaching. We expect spot price will remain at this level before the release of contract price for 1H August. Should the contract price be in line with market's expecation for a price surge, the spot market for 1H August could demonstrate a favorable performance.

:: SDRAM price continues raising

As the price level for DDR raised significantly in 1H July, SDRAM will stick with the trend for a steady increase this week. Although SDRAM is no more a mainstream item and its weight on total output is gradually declining, the contract price for SDRAM still remains high. This phenomenon caused a price surge for SDRAM 256Mb 32Mx8 133MHz rising from USD3.44 in early July to the current USD 3.87, or 12.5%. We anticipate the price level for SDRAM will remain stable or a continuing increase as the output decreases.