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May 26, 2017

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DRAM prices to rise steadily on decreased supply: Inotera

The price of dynamic random access memory (DRAM) chips will continue to increase in the months ahead amid rising demand and fewer suppliers, a senior executive of Inotera Memories Inc. said yesterday.

Noting that DRAM prices have been surging steadily since the beginning of May, Inotera President Charles Kau said the upward trend is expected to continue through the third quarter of this year.

"The average DRAM price in the April-June quarter is expected to be higher than in the first quarter and may increase further in the third quarter as new laptop models are set to hit the market, stimulating new demand," Kau said on the sidelines of a shareholders' meeting of Inotera, one of leading DRAM makers in Taiwan.

As to the range of future DRAM price hikes, Kau said it will depend on how the eurozone debt crisis unfolds.

Separately, Kau offered a positive view for U.S. ally Micron Technology's acquisition of Elpida, the Japan-based DRAM maker mired in financial trouble.

"With Elpida withdrawing from DRAM production, there is one less DRAM supplier, which is positive for an overall supply-demand equilibrium in the market," he said.

He pointed out his company hasn't spoken about further technology cooperation with Micron, which currently holds a 39.6-percent stake in Inotera. Micron meanwhile has no plans to inject more capital into Inotera, Kau said.

Inotera yesterday closed at NT$7.68, up 1.45 percent from Wednesday.

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