DDR-RAM fixed price increases by 15%

D-RAM Semi-conductor manufacturers such as Samsung Electronics, Hynix Semi-conductor, etc will provide 256 Mega DDR to PC manufacturers at 10-15% higher price. The increase of the price was decided after the price of DDR increasing in the middle of the last month. So it is estimated that the increase will help the manufacturers’ operation in the second half of this year.

At 6th, according to Samsung Electronics and Hynix Semi-conductor, in the early of this week, they have negotiated with main customers such as IBM, Dell and other major PC manufacturers to increase the price of 256 Mega DDR by 10% to 15%. They are also on negotiation with other customers to increase the price.

According to a reliable source in the industry, American PC manufacturers have increased the order for seasonal boom and specials boom; fall new school term and Christmas. Therefore, The demand for 256 Mega DDR is in excess and the supply is in shortage by 3% to 5%. The circumstance provides the semi-conductor manufacturers an opportunity to increase the fixed supply price.

D-RAM is applied to communication equipment, digital home appliances, etc as well as desktop PC, notebook PC, etc. So the shortage of DDR will continue for a while. Under the circumstance, Samsung Electronic and Hynix Semi-conductors have the plan to negotiate the price with major customers such as PC manufacturers every month or every other week.

Kim Young Jun, a senior researcher of Kyobo Stocks analyzed “the price increase of DDR that shares 40% of D-RAM market reflects the recovery of semi-conductor business, but overall recovery of recovery of semi-conductor business will began from the last quarters of this year at the earliest.

Joong-Hyun Park sanjuck@donga.com