Monday, 24 September 2007

As DRAM Prices Fall, Asian Chipmakers Suffer

As Dynamic Random Access Memory (DRAM) prices fell down across the world, Asian chipmakers saw their fortunes in the stock market also fall. DRAM memory chip prices fell to their lowest...

As Dynamic Random Access Memory (DRAM) prices fell down across the world, Asian chipmakers saw their fortunes in the stock market also fall. DRAM memory chip prices fell to their lowest this year and prospects of a rebound dimmed.

It is said heavy competition has caused prices to tumble further price declines are a possibility with little chances of recovery.

The competition abodes well for the consumers because PC makers will add more DRAM to their computers. They might even offer extra DRAM as an incentive and it generally spurs memory chipmakers to move forward on new technology that will ultimately increase computing performance.

The decline in the price has been attributed to massive production in the market as chipmakers laid more emphasis on winning market share than on profits. They invested heavily on building factories and churning out DRAM chips cheaply.

As the news spread, the share of major DRAM chipmakers fell sharply across Asia.