Taiwan DRAM makers predict price drop

The rising prices of computer memory may be temporary according to several Taiwanese DRAM module manufacturers.

The manufacturers claim that seasonal demand will begin to reverse the Windows 7-driven surge in spot pricing for 1Gb DDR3 chips which has risen 158% between July and November. They also speculate that Korean memory makers will follow suit in order to remain competitive.

Korean suppliers have indicated that since the Taiwanese government is (in their opinion) likely to fail in its efforts to establish Taiwan Innovation Memory Company (TIMC), they no longer need to intervene in DRAM prices and are comfortable simply going with the flow. According to market data for November 17, prices for DDR2 and DDR3 are finally flat or have begun to recede.

Expect to see DDR2 and DDR3 prices normalize over the next several months if events unfold as the tea leaves suggest.