Sharp Increase of D-RAM Price. Semiconductor Business is getting hot. In the Northern American Market, It Jumped by 21% a Day

The semiconductor business has made a speedy recovery contrary to an expectation.

It is forecasted on July 14 that the semiconductor D-RAM spot price has jumped owing to PC demand expansion for US new school term and the long-term fixed supply price of domestic manufacturers will trend upward.

Especially, the price of DDR (Double Data Rate) which Samsung Electronics and Hynix have placed more weight in production has taken a jump. So, its sudden price will considerably contribute to profitability improvement of domestic semiconductor companies and product exports. DDR has been popular as the next generation D-RAM twice as faster as the SD-RAM of the same capacity in data processing speed.

In the Asia spot market on July 12, the market price of 128 Mega DDR(16×8 266㎒) increased sharply by 10.77%. Its transaction ended to USD 3.40∼3.90(average price of USD 3.65).

In the North American spot market, 128 Mega DDR(32×4 200㎒) price jumped sharply by 21.05% (transaction price of USD3.25∼3.65) for one day.

D-RAM Exchange, the semiconductor e-Biz site suggested “D-RAM stocks of major semiconductor companies decreased from the quantity of 6~8 weeks to the quantity of latest 4 weeks, and PC consignment manufacturers have run our of stocks”. Accordingly, the increase trend of semiconductor price will be continued for a while”.

The increase of the spot price will influence on the negotiation of long-term fixed supply prices between D-RAM companies and PC manufacturers to be held in the middle of this month.”

Oh Jin-Geun, the analyst of Mirae Asset Securities forecasted “PC companies have run out of stocks and the supply of DDR and SD RAM has not been activated. Accordingly, in a negotiation of this month, the fixed transaction price will increase by 5%”.

Gim Yeong-Jun, the analyst of Kyobo Securities said “If the semiconductor business shows a recovery trend in the third quarter, Hynix which is forecasted as a liquidity crisis after the end of the year will be able to take a breath.”

Jeong-Hun Park sunshade@donga.com