DRAM Makers Stop Giving Prices After Japan Earthquake

Already much has been said about the far-reaching consequences of the disaster that struck Japan last week, and it seems that the DRAM market as a whole is going through an uncertain period.

For months, DRAM prices have been going lower and lower, until they hit a sort of bottom during February, a level they stuck to even over the past couple of weeks.

The main reason for this was the oversupply which the weak demand was unable to do much about, even though DDR modules and kits are selling for very low amounts of money nowadays.

With Elpida getting more or less shut down, however, and with the worldwide supply chain expected to be affected, DRAM chip suppliers have stopped offering chip prices for the spot market.

Samsung Electronics and Hynix Semiconductor are just two of the companies that chose to follow this course of action.

Taiwan-based Powerchip Technology is another, one that announced this decision as soon as the earthquake happened.

Basically, there is a sort of general consensus that prices will probably have to be adjusted after all this, so DRAM makers chose to step back and look at the situation in detail before deciding.

Meanwhile, DRAM, distributors expect global production to be affected enough for later availability to be uncertain.

That said, they have placed more orders, as they are especially concerned about what disruptions might be caused by the damage to silicon wafer suppliers Sumco and Shin-Etsu.

For those that need a reminder, early March prices were flat on-month and may just start going up again after this mess is sorted out.

Of course, there is no guarantee that supply will even become tight, if it will even get anywhere near that stage.

Finally, downstream module companies have been wary of taking large orders from traders and distributors, since that would lead to excessive speculation and more complications down the line.