Prices on DRAMs falling dramatically

Analytics are getting worried about the heavy fall on the DRAM prices during January. So far this year the prices on DRAMs have fallen 30 percent due to the price reductions that the falling demand and seasonal changes have lead to. “DRAM prices were projected to fall by 31.3 percent for the entire year of 2007, but ASPs have fallen by that much alone since January", Brian Shieh, president of Powerchip told EETimes. “In total, the DRAM market is expected to hit $36 billion in 2007. In comparison, DRAM prices fell by 12.5 percent in a banner year for the products in 2006. The DRAM market hit $34 billion in 2006, up from $25 billion in 2005", he said during a presentation at Taiwan+China Semiconductor Outlook event here on Wednesday (Feb.7). After the Chinese New Year the prices are expected to hike but the analysts are still worried about the pricing development of the DRAM memories. However the launch of Windows Vista is expected to boost the DRAM demand again.