Global DRAM prices to pick up in 2002

Global DRAM prices will rebound to $4 to $6 per die (128Mbit equivalent) in the first half of 2002 as demand increases, according to a forecast by the Market Intelligence Centre.

The forecast is based on the assumption that DRAM makers will be unable to increase production capacity fast enough to meet the rapid increase in demand for DDR DRAM in the first quarter of 2002, MIC said.

The company also predicted that the price would further climb to $8 to $10 in the fourth quarter of 2002. "DRAM prices will return to a level of $8 to $10 in the fourth quarter of 2002 due to the slowdown in growth of overall supply and the stimulation of demand for basic memory by the release of the Windows XP operating system by Microsoft," said Jonah Chen, MIC industry analyst.

The global DRAM market was rocked in 2001 when the average unit price declined from $10 in the first quarter to under $3 in the fourth quarter. MIC cites the slowdown of the PC market and oversupply as the two main factors behind this.