Second week of December, spot price for DDR is on an up trend. There are several indicators we saw which may lead to this.  First, December’s China PC OEM demand is higher than expected. This might be coming from late Christmas demand and the urge to digest annual budget in China government. Also, DDR spot price has been on a decrease trend since November, it has induced some OEM maker to come in and buy at low price.  
Second, capacity for testing and packaging was tight which leads to the third indication we saw, bulk of eTT supply appeared in the spot market. However, eTT spot price remained stable.

As for SDRAM, spot price rebounded 6% for 16Mb 1Mbx16 166MHz from USD0.51-USD0.54. We have seen signs of design house cutting capacity. Since market size isn’s too big, limited supply might have triggered this price increase.

Down trend for NAND Flash spot price last week with 8Gb as an exception. 1Gb stack chip’s spot price fell the hardest with a 3% decline to USD8.25. Spot price for 2Gb tumbled between USD17.52-USD17.54. 

For next week, it’s likely both DRAM and SDRAM spot price will remain stable or a slight decrease since December’s first half contract price didn’s fell as hard as we have expected. Our long term view for NAND Flash price trend is a downward slope. Contract prices for the past 4 months have been stable with a slight decrease. Even now, NAND Flash?spot price is still higher than contract price, the premium percentage for spot to contract is still 11%/1%/3%/1%, 8Gb/4Gb/2Gb/1Gb respectively. This means 8Gb and 2Gb are the two chips with the most room for price decrease in spot which we should look for in the coming weeks!