Spot price begins to spiral around current level

Spot price hit the seasonal high at Nov. 13th (Average $1.69 for 128Mb SDRAM) and began to spiral down a little bit. We estimate for the price trend will keep within range $1.35~$1.55 (average for 128Mb SDRAM) for a while since the supply and demand won't change for short term.

Most of Contract prices are still on Negotiation

Why still don't update contract price for 2nd half of Nov. on website yet? The reason is we still can't get the raw data from those major contract sellers and buyers. Most of DRAM makers are still on negotiating contract price with System companies and Big OEM customers. For DRAM makers they want to rise the price at level around $1.5 for 128Mb, but system companies don't keep that much interest in rising price since they don't predict the bright coming demand.

We believe the contract price eventually will be hard to raise too much for this month. The spot price begins to spiral down a little at current level that won't help contract price rising at all. Probably the reasonable price range will be within $1.2 to $1.4 for 128Mb SDRAM.

DDR will keep Hot for a while

	SDRAM(Million-units.)	DDR(Million-units.)	SDRAM:DDR
128Mb	118.5	22.1	5.36:1
256Mb	26.6	4.6	5.78:1

From our survey data, the worldwide Nov. DDR output compares with SDRAM output as above table. Although the really end demand is not really switching to DDR yet. Our information/sources show us the price for DDR will keep in vibration for a while since some companies are preparing for DDR-support chipsets. Motherboard sides also show the good result of DDR supporting models will reach to 60% comparing with SDRAM models.