DRAM Manufacturers Ramp Up Production

Manufacturers have reacted almost immediately and there are reports that vendors are increasing their production volume again. Tier 1 manufacturers cut their production volume in Q4 to halt a dramatic price decline.

According to Digitimes, DRAM producers have added 100,000 wafers to their output in Q1 to move towards a balance of supply and demand. Forecasts indicate that DRAM demand may rise by 30 percent in the current quarter. Digitimes said that average selling prices for 4 GB DDR3 DRAM modules have increased by about 6 percent to $18 since Q4. 2 GB DDR3 DRAM also showed higher selling prices than in the last quarter.

Elpida remains a uncertain variable in the DRAM market, which could make a major impact on near-term DRAM pricing. The company recently stated that it was not able to renegotiate its debt, which caused speculation that the company may now be forced to merge with Micron. Elpida still has until March 22 to come up with a solution to address a pile of $4 billion in debt.

Analysts such as Raymond James’s Hans Mosesmann predict that a Elpida will have a "significantly diminished" capacity to produce DRAM, which could push the prices of the memory higher.

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  • amuffin
    vviikkrraannttcan't they do the same thing with HDD?is there anyone who even uses DRAM?

    fail.....
    all of the stuff is flooded and evrybody uses dram, phones computers etc. The very computer you are using is using dram.
    25
  • builder4
    Quote:
    Tier 1 manufacturers cut their production volume in Q4 to halt a dramatic price decline.


    How is this not collusion? Wikipedia states collusion is "an agreement among firms to divide the market, set prices, or limit production", and is this not an agreement to limit production?
    16
  • emperorxyz
    builder4How is this not collusion? Wikipedia states collusion is "an agreement among firms to divide the market, set prices, or limit production", and is this not an agreement to limit production?


    I'm guessing they didn't actually have any agreement. They each independently had their financial people tell them that there is a dramatic price decline. Heck, they can notice that themselves, we all have. Knowing that there is a price decline, they each independently decided to cut their production simply because the price they will sell might be actually lower than the cost of production, so they would take a loss on each sale and it doesn't take a genius to decide that they should cut production. The key is they each decided independently from the others without any agreement.

    Anyway, that's the principle. I'm not saying they didn't have any agreement. They might have had in secret. I'm just saying that it is plausible that they each decided to cut production based on the market condition.
    10
  • Other Comments
  • vviikkrraanntt
    can't they do the same thing with HDD?
    is there anyone who even uses DRAM?
    -26
  • amuffin
    vviikkrraannttcan't they do the same thing with HDD?is there anyone who even uses DRAM?

    fail.....
    all of the stuff is flooded and evrybody uses dram, phones computers etc. The very computer you are using is using dram.
    25
  • builder4
    Quote:
    Tier 1 manufacturers cut their production volume in Q4 to halt a dramatic price decline.


    How is this not collusion? Wikipedia states collusion is "an agreement among firms to divide the market, set prices, or limit production", and is this not an agreement to limit production?
    16