Record sales highlight DRAM price rise
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(InfoWorld) - Some of Taiwan's DRAM makers have reported record monthly sales for August, highlighting an increase in DRAM prices that could continue in the months ahead. The higher prices are unlikely to affectÂ PC pricesÂ thanks to the stiff competition among system vendors and makers of other types of components, such as microprocessors. But users who want some extra DRAM for their PCs could find themselves handing over a bit more money than before. Nanya Technology, Powerchip Semiconductor, and ProMOS Technologies all reported record sales for August this week. The higher sales stem partly from an increase in PC sales in some parts of the world. That increase drives up prices for DRAM, since most of the chips -- around three quarters of the global supply -- end up in PCs. Analysts say PC demand could stay robust for the next several months, as back-to-school demand and holiday demand are followed by the launch of Microsoft's new operating system, Vista. That could keep prices for DRAM high. The spot price Tuesday for the most widely used DRAM, 512Mb DDR2 (double data rate, second generation) chips, is around US$6.00, according to DRAMeXchange Technology. Crystal Lee, a memory chip industry analyst at ABN AMRO AsiaÂ in Taipei, forecasts that prices for the chips will remain at or near that level in coming months. Powerchip and ProMOS have been improving their ability to make chips using 90-nanometer production technology, which allows companies to make chips that are smaller, more powerful and more energy efficient. It can also help them reduce costs, because making smaller chips allows their production lines to churn out more chips using the same raw materials. Nanya's sales for August rose 32 percent to NT$6.62 billion, a new all-time high for the chip maker, the company said Tuesday. A day earlier, Powerchip Semiconductor said its sales for August rose to NT$8.03 billion (US$245 million), up from NT$4.45 billion in the same month last year. The figure was also 14 percent higher than July, due to higher prices for the chips and increased output at factories. It was the company's fifth straight historical high. ProMOS's sales hit NT$6.01 billion last month, up from NT$2.53 billion during the same time a year ago, and 15 percent higher than July. "DRAM contract and spot prices continued to rise last month, but we also benefitted from our 90 nanometer process," said Ben Tseng, spokesman for ProMOS.
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Semiconductor sales worldwide surged to a monthly record of $20.5 billion in August, fueled by higher demand for memory chips used in PCs and mobile gadgets such as cellphones and digital cameras, an industry group reported yesterday.
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Heavy price cuts help deliver a stronger than expected rise in UK High Street sales, official figures show.
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Kerching Microprocessor chip sales hit record levels in the third quarter thanks in large part to an intense two-horse race between arch rivals Intel and AMD, according to a new study.â¦
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The rapid uptake of smartphones around the world has ensured the future of DRAM (dynamic RAM) in mobile handsets, where the chips are used in every unit shipped.
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Rambus Inc. on Thursday said  e-mails from Micron Technology Inc. and Hynix Semiconductor  (000660.KS) support its claims that the rival memory chip  makers conspired to fix prices, sending its shares up 18.5  percent.
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The chipmaker has raised its 2007 capital spending plans, despite falling DRAM prices.
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Worldwide sales of computer chips are expected to set a record this year, according to the San Jose, Calif.-based trade group Semiconductor Industry Association.
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(Rochester, NY) 09/22/04 -- Bold statements came from the Eastman Kodak company today. Investors learned digital sales are soaring beyond the company&#39;s expectations.
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Semiconductor sales will reach $214 billion this year, a new record high. But next year will be about the same.
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Hit $25bn Global chip sales soared to $20.5bn in August, a new monthly record, according to data from the Semiconductor Industry Association (SIA).â¦
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SAN JOSE, Calif. - The Semiconductor Industry Association (SIA) said worldwide sales of semiconductors rose to $18.2 billion in August, exceeding expectations of $18 billion (see Tuesday, Sept.
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Keeping spotty head above US$1 water The DRAM industry has seen DDR2 spot prices spike by 15-20 per cent in the past month, with eTT chips outpacing branded equivalents.â¦
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(InfoWorld) - ProMOS Technologies raised its projected 2007 spending on new memory chip plants this year, bucking expectations thatÂ falling DRAM pricesÂ might cause companies to rein in such spending. The Taiwanese chip maker raised its projected factory spending to US$1.8 billion from aÂ previous estimateÂ of US$1.5 billion to US$1.6 billion. Increased factory spending in Taiwan will benefit users because the company's rivals will likely make sure their capital spending keeps pace with ProMOS's, ensuring plentiful chip supplies and continued low prices for DRAM (dynamic RAM) and other memory products. Prices of the most widely used DRAM chips, 512Mb, DDR2 (double data rate, second generation) chips that run at 667MHz have fallen 66 percent so far this year to US$2.19 each on Thursday, according to DRAMeXchange Technology, which runs an online trading site for the chips. The price is near or below the cost of production for most manufacturers, and far below the US$6.36 price the chips ended at last year. "Even though prices are falling, we still have to upgrade production lines to new technology in order to cut costs," said Jessie Peng, chief financial officer at ProMOS, in a telephone interview. A large portion of the spending is for a new plant the company expects to ramp up to maximum capacity by the end of this year. The company also hasn't changed any of its longer term spending plans. "We have to keep up with our rivals," she added. A number of chip makers in Taiwan have announced ambitious spending plans for this year. But price declines in the DRAM market caused some analysts to predict reduced spending on new chip plants. The ProMOS announcement contradicts these expectations. Inotera Memories Inc. earlier this year revealed plans to build two advanced memory chip factories in northern Taiwan in an investment estimated at more than NT$200 billion, (US$6.1 billion). Its spending this year is forecast at NT$48 billion, up from NT$40 billion last year. In addition, Powerchip Semiconductor last year announced a major new spending plan with partner Elpida MemoriesÂ of Japan. The two companies will jointly invest US$13.9 billion over five years to build four new DRAM factories in Taiwan. The joint venture company, named Rexchip Electronics, is slated to open this year in an advanced 12-inch chip factory. Â
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(InfoWorld) - Anyone looking to add a bit more memory to their computers won a gift from the DRAM (dynamic RAM) industry. Heavy competition has caused prices to tumble and industry analysts predict further price declines. The contract price of the most widely used DRAM chips, 512Mb, DDR2 (double data rate, second generation) chips that run at 667MHz dropped 12.5 percent from two weeks ago to $1.75 each as of Thursday, a new low for this year according to DRAMeXchange Technology, which runs an online trading site for the chips. That's great news for users for three reasons. DRAM price declines increase the likelihood that PC vendors such as Hewlett-Packard and Dell will add more DRAM to the computers they sell, or offer extra DRAM as an incentive; it give users a chance to buy more DRAM on the cheap; and it generallyÂ spurs memory chip makers to move forward on new technologyÂ that will ultimately increase computing performance. Contract DRAM prices for DDR2-667 chips have plunged 70.5 percent so far this year to the Thursday low. The main reason is because memory chip makers built too many new production lines in anticipationÂ of strong demand for Microsoft's Windows Vista, which requires more DRAM per PC, as well as because stronger DRAM prices in general for the past few years was a sign to some that the market had stabilized, analysts say. DRAM prices may continue to decline a bit further, but downside appears limited, according to Gartner. Today's pricing is at a similar level to the lows reached in May of this year, when DRAM makers refused to sell because the price had hit their cash cost. "However, we may see some activity below this level, because some brokers and distributors who are holding inventory may be prepared to sell at a lower price to clear stock," the market researcher said. Over the years, DRAM makers have tended to place more emphasis on winning market share than on profits, and the current DRAM price declines are symptomatic of their battles. Companies have invested so much money in new factories that the increased output has caused a glut, leading to price declines. Prices for DRAM chips fellÂ almost 40 percent in the first half of this year, compared to the first half of 2006, offsetting a 66 percent increase in unit shipments, according to the Semiconductor Industry Association. Contract prices are typically renegotiated between DRAM makers and PC vendors every two weeks. Around four fifths of all DRAM is sold by contract, while the rest is sold on the spot market, just like commodities such as oil and gold. Â