DRAM chip contract quotes dropped 10% again in the second half of November. 1GB DDR2 modules also fell to there lowest point at less than US$10. DRAM prices will not rebound until the end of this year even the first quarter of 2009, according to forecasts by industry players.
Contract quotes for 1GB DDR2 modules currently stand at US$9-10.5, while quotes for 512MB modules are at US$7.25-6.5, and 2GB modules US$18-21.
Output reduction by DRAM makers have not helped DRAM prices to recover because the end-market demand is too weak, the sources indicated.
DRAM makers believe the effects of product cut will emerge in December, but demand will go down again after the holiday season peak.
The sources said they expect growth in PC demand to slow down in 2009, and the demand to be focused on netbooks which will have a limited benefit for the DRAM market since netbooks carry lower memory capacities. Supply will continue to exceed demand unless makers implement further output reductions.