Week after Chinese Lunar Year, demand is still on stagnant with lots of buyers pending since lots of supply replenishments show up in the spot market due to month end billing pressure from manufacturers. We have only seen limited demand from China on modules, demand wise, and lots of parts release in Hong Kong, Europe and USA, supply wise in the spot market. 32Mb x 8 chip spot prices went from USD3.72 to USD3.45 with a 7% drop; OEM module spot prices went from USD33.4 to USD28 with a 16% price drop; eTT spot price went from USD3.52 to USD3 with a 15% drop.

Neither signs of demand nor signs of SDRAM price recovery

Inquiries for SDRAM this week was little to be heard not to mention any dealt transactions. Even with lowered spot price, comparing to last month, we still do not see any signs of SDRAM demand recovery. 16Mb x 8 and 16Mb x 16 were the two chips with most spot price drop, with a 3 % drop from USD3.28 and USD4.35 to USD3.19 and USD4.28 respectively. 1Mb x 16 was the only chip with spot price stability of USD0.49.

Spot light product of the week-NAND Flash, in shortage and strong demand!

NAND Flash has been on tight supply since the beginning of 2005. With the huge demand from iPod Shuffle and demands from memory cards for mobile phones with card slots, most people expected to see an upward spot price trend for NAND Flash. However, all the NAND Flash chips have been on a downward spot price trend this week except for 128Mb, due to lack of confidence in the sustainability of upward spot price trend. Demand for high density chips of 2Gb and above are still the center of the focus, yet their prices went down about 1-2% this week to USD18.06, USD32.38, USD61.64, respectively. Another chip with tremendous spot price drop was 256Mb, it dropped 11% this week to USD3.28. We believe the cause for this drop is the density of bundle sale memory card for either DSC or mobile phones have upgraded from 32MB to 64MB. Due to this density upgrade, demands for 256Mb will move to 512Mb.