DRAM contract prices in 1H Sept. has come out and according to investigations, following a 11.76% declining in 2H August, the contract price for DDR2 1Gb chips has declined more by 12.5% in 1H Sept, dropping to US$1.75, a number that is equal to the history low point.
DRAM spot and contract market are faced with over-supply at the same time. And the contract price went down dramatically after the end of Beijing Olympic Games in late August. Currently, the average price for DDR2 1Gb eTT has slid downward to US$1.3, with wave band declining rate reached 24.4%.
Statistics show that spot price has also seen a remarkable drop, with both DDR2 1Gb eTT and DDR2 1Gb branded chips to make new lows. The declining speed has been faster than market previously predicted. Taiwan DRAM makers including PSC and ProMOS saw their sales revenue to drop by double digit in August compare to the previous month as the weak price and high inventory levels. And that more drops of DRAM prices in September would post more pressure on industry makers. The general performance in the third quarter for DRAM players would probably continue to be in red ink.