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DRAM contract price expected to take off in July

DRAMeXchange said yesterday that the contract price of personal computer (PC) dynamic random access memory (DRAM) chips is expected to rise in July, due to the constrained supply of PC-related DRAM chips.

DRAMeXchange Assistant Vice President Avril Wu (吳雅婷) told local media that average 4-gigabyte (GB) DRAM chip contract prices leveled at US$30.5, or US$3.5 per die, and that the spot price moved to a 1.5-year high of US$4.35 per die in June, representing a 24.29-percent difference.

Increase in DRAM spot price usually actuates the contract price. DRAM makers also use the difference to their advantage for price negotiations.

The contract price of PC DRAM chips is expected to rise between 5 and 10 percent sequentially this quarter, as reduced production has caused supply constraints. That paved the way for global DRAM chipmakers to post record-high annual revenues again after last year's US$35.2 billion.

Concurrently, mobile DRAM managed to penetrate both the individual PC and server markets, and could eventually be equipped in wearable devices.

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