The poor trading made DRAM price down last week in the DDR spot market. The expected orders from demand side for Chinese New Year were not strong enough so it did make sense that PC OEMs purchased their DRAM procurement quantity with lower than our expectation last week. Moreover, because PC OEMs all showed low February shipment forecast to DRAM vendors, DRAM vendors had more pressure to release their components to spot market for their target sales revenues last week. According to our market survey, DRAM vendors and PC OEMs all expect that contract price for first half of Feb will drop further. We think that most PC OEMs have enough goods in stock for the consumption during Chinese New Year. After buyers kept waiting and seeing to get a clear picture the past two weeks, buyers didn't get higher price. In summary, PC OEMs with low shipment expectation still believe that demand will drop further in the contract market in Feb.

In NAND Flash market, high density 2G, 4G and 8G items with good prices and limited supply were still hot on January 24th, and 25th, so buyers were hesitant to buy chips. Moreover, after price rally during the first half of last week, some sellers shipped their stocks before the end of Jan. The NAND price trend reversed since January 26th. Due to contrary views between buyers and sellers last two weeks, it should be a stalemate trend before the Chinese New Year.