NAND Flash-
1-4% average contract price decrease for high density chips; 3-4% average spot price increase for low density chips

Contract price for NAND Flash this month remains the same price trend (downward price trend for high densities and stable price trend for low densities) as before. Average contract price for 1 Gb/2Gb/4 Gb/8Gb chips drop to USD7.6/USD14.96/USD28.4/USD54.6, respectively.

With the 1-4% price drop for 2Gb and above density chips' average contract price, traders have started to worry about further aggressive price drops. Therefore, lots of traders have started to sell their high density stocks to avoid potential loss and we have seen a faster price drop for high densities in the spot market. Current price difference between spot and contract for 8Gb is around 3 %( the lowest among the other high density chips). Thus, we expect to see cross over between spot price and contract price soon. By then, contract price will further decrease; afterwards, we might be able to see another spot price rebound if seasonal demand trend remains.

For low density chips, it's a completely different story with contract price remaining flat and spot price surging. Currently, 256Mb and 512Mb chip contract prices remain stable since supply is limited. Continuous demand from consumer products creates a price surge force in the spot market. Therefore, this week's spot prices increase 3-4% for these two chips to USD4.64 and USD5.7 respectively.

DRAM-
Soft demand and flat DRAM supply induce stable DRAM spot price

Demand for DRAM and SDRAM this week is flat. Purchasing incentive surfs only when price is at the lowest. We have seen a halt on continuous price decline trend since traders in the spot market have stopped offering low prices.

eTT this week's spot price is around USD2.08 to USD2.1. This price range has remained for several weeks now. With limited stock circulating the spot market now, we don't see a further price cut potential.

Majors this week is priced around USD2.28-USD2.33, remaining stable. However, quantities dealt were quite small. 256Mb 32Mbx8 333MHz and 266MHz chips have not showed up in spot market for some time now. Spot price for modules this week is priced around USD17.5 to USD18.2. Basically, it's been a quite week for DRAM this week.

SDRAM-
China DVD vendors looking for 1Mbx16 chips

More actions happened for SDRAM market this week. Even so, average spot price for this week is stable. 128Mb 16Mbx8 133MHz spot priced at USD2.8; 64Mb 4Mbx16 166MHz/143MHz priced at USD1.34/USD1.32; 16Mb 1Mbx16 166MHz/143MHz, priced at USD0.45/USD0.44.

Inquires focused on 16Mbx8, 8Mbx16, and 1Mbx16 chips, however, the first two chips are being listed as shortage items with Samsung. We also heard the SMIC intends to increase price for their SDRAM chips. Another thing we have noticed is demand for 1Mbx16 chip is coming from China DVD vendors; yet, they are only willing to purchase at the lowest price. With the price gap between bit and buy real transactions were scarce making SDRAM spot price this week remain flat.