Some DRAM module makers in Taiwan are forecasting a price correction to reflect seasonal demand in December, and have expressed caution about the near-term chip pricing.

The makers have also speculated that Korea-based chipmakers who have already turned profitability are likely to take advantage of their cost competitiveness and slash prices to boost shipments.

Seasonal effects are showing in the DRAM sector, which has seen weak spot prices. But Korea suppliers now see no need to intervene in DRAM prices, since the Taiwan government is likely to fail in establishing Taiwan Innovation Memory Company (TIMC, previously Taiwan Memory Company), the module makers said. The chip vendors would allow DRAM prices to follow market mechanisms, they added.

Previous reports cited market observers as indicating that major DRAM producers intended to push chip prices upward in order to minimize the possibility of the Taiwan government going ahead with the TIMC project, which aims to revamp the island\'s capacity-driven DRAM industry.

Average spot prices for branded and effectively tested (eTT) 1Gb DDR2 chips trended down 0.76% and 1.60% in one day to close at US$2.60 and US$2.45, respectively, on November 17, according to data from DRAMeXchange. Quotes for 1Gb DDR3 also slid 0.68% during the day to US$2.89 on average [digitimes].