Spot prices should remain flat this week.

Contract price

Contract price for 1H September has been set..

DDR contract prices have been moving up slowly - which is more acceptable for OEM customers, and exhibits relatively stable uptrend in demand. DRAM makers still expect to increase contract prices for 2H September, and we agree that it can go up slightly if PC and motherboard shipments continue to show healthy growth in shipments during the 2nd week of Sep. (during the 1st week of September, shipments for 1st tier motherboards increased approximately 20% wow).

SDRAM contract prices have been trending down, and SDRAM contract sales volumes have been decreasing. Some companies have even ceased quoting SDRAM contract prices - the significance of SDRAM contract price has already lessened and is no longer a good guidance for DRAM pricing trends.

Spot prices remain flat

DDR spot prices will stay less volatility this week. DRAM makers are still guiding for sequential supply growth in the 4th quarter, but keeping a relative conservative view on the growth rate. Also, because of uncertainty in demand, the channel is getting more cautious on inventory for the coming season - which will reduce some demand (due to lack of channel inventory replenishment).

SDRAM spot prices showed some upward mobility over the last few days due to Hynix officials quoting $2 for 128Mb and tightening shipments to the spot market. The price, however, has begun to soften again. We don't expect that it will show aggressive uptrends in the near-term.

Although confidence about a strong uptick in DRAM demand going into the fourth quarter remains fragile, the product mix and process migration issues on the supply side are combining with some increased seasonal demand and should put a floor on pricing levels for both DDR and SDRAM.

DDR Premium makes demand turn to SDRAM?

This paragraph is for those who are not involved in memory or a PC related business.

Some people begin to wonder... "will the premium on DDR make demand switch back to SDRAM?". The Quick answer about whether SDRAM can be substituted for DDR in main stream PC's is "NO". In short:

1. Although some chipsets support both DDR/SDRAM (marked in the spec.), the reality is that they usually have just one function (that is turned on to facilitate the performance).

2. Currently most motherboards' spec. have just the sockets for DDR and no longer SDRAM sockets.

3. SDRAM model PCs and Motherboards are gradually being phased-out of production - the market size of SDRAM models is shrinking. SDRAM demand still exists for the upgrade market, and some SDRAM PC models and niche market (like sever market and legacy density for PC peripheral products).