:: Expectation for positive impact from Computex

Owing to a hesitate purchasing strength, the spot market this week is relatively blunt: low transaction frequency and liquidity. However, we anticipate Computex, the world's third largest exhibition of computers and related technology held in Taiwan from Sept. 22-Sept. 26, will bring out demand to the clone market. Also, the coming October long holiday in Mainland China is likely to stimulate DRAM consumption in Asian market. We expect the holiday impact will reflect in the fourth week or last week of September. In line with our early projection, we expect the spot price will be edging up in October for Christmas inventory building.

:: Lukewarm contract market-waiting for positive signal

On the contrary to tier one vendors' expectation, the contract price for 2H September remains flat, mainly due to weak demand and sufficient inventory level in PC OEMs. Restrained by weak purchasing willingness and lukewarm market sentiment, vendors hence found it difficult to drive price up. However, contract price for DRAM modules is likely to surge 1~2 USD on top of the current price level if positive signal arrives in October.