DRAM module makers increase prices

DRAM module makers Kingston Technology, Transcend Information, A-Data Technology and Power Quotient International (PQI) have increased their prices following the recent surge in DRAM chip quotes to US$1. A-Data and PQI are expected to be able to return to profitability as a result, according to industry sources.

DRAM pricing dropped to US$0.50 in mid-December and the current quotes for effectively tested (eTT) 1Gb DDR2 of US$1 represent an increase of 100% within one month. It is possible quotes will increase to US$1.50 in the short term, the sources noted.

DRAM module prices have risen over 10% since the end of December. The highest quote for 1GB DDR2 modules on January 8 was US$10, and contract quotes for the first half of January are around US$8.50. If quotes for 1GB DDR2 modules can top US$10, DRAM contract quotes may continue to increase by up to 15-20%, the sources said.

Transcend, A-Data and PQI all indicated that the reason for the increase in module pricing was to reflect current DRAM prices. Market watchers are optimistic about module makers' first-quarter sales as a result of increasing DRAM and NAND flash prices.