DDR Modules in Oversupply, Price Plunges

The price of 256-mega double-data-rate DRAM modules has tumbled down to the $3 level, setting a new record low.

256-mega DDR266 DRAM modules were traded at $3 per unit in the Asian spot market on Feb. 17, sparking the concern that the price will further crash down to the $2 level.

According to memory semiconductor e-commerce Web site DRAM Exchange, the average price of the mainstream semiconductor chip was down 2.83% from the last weekend to $3.08 per unit, continuing the downtrend.

256-mega DDR333 DRAM modules were traded between $3.6 and $4.1, or $3.74 on average, down by 1.31% from a day earlier, and DDR400 DRAM modules were down 1.93% to between $4.9 and $5.4, or $5.06 on average.

Synchronous DRAM (SDRAM) also fell 2.34% down to between $3 and $3.3 (average $3.08), trading for an almost same price as DDR DRAM modules, which are twice as fast as SDRM.

The narrowed gap came as chip manufacturers reduced supplies of SDRM modules facing weak demand unlike DDR, which is in over supply.

Meanwhile, 128-mega Rambus DRAM modules were traded for $34.8, up 4.19% from a day earlier, and 256-mega Rambus DRAM also up 4.63% to $67.7.

Industry experts say that the steep downturn will likely slow down, with the price down to the $2 level, as DDR module makers are forced to reduce supply volumes amid the overheated competition.

˝The downtrend is expected to slow down next month given reduction in production volumes and rising demand in the new-year school season,˝ said Min Hu-shik, analyst with Tongyang Securities.

Tae-Han Kim freewill@donga.com