According to data from DRAMeXchange, DRAM spot trend shows that the magnitude of growth as seen in eTT chips (in both 512Mb and 1Gb density) was higher than branded ones. This either suggests that a fundamental demand recovery spurs eTT prices to outgrow branded chips' , or suggests that circulated volume of eTT chips is higher than branded chips.

"As eTT is sensitive to market trend, corresponding prices often take a faster and more rapid reaction over any industry trend, even the trend is just a speculation. When price environment is good, prices of eTT usually enjoy higher gain than branded chips, and vice versa," said DRAMeXchange analysts.

Despite 1Hs as the traditional slow seasons for PC sales, DRAMeXchange reiterates that price of DDR2 512Mb should stabilize at US$1 range in 1Q08. When price of DDR2 drops below US$1, DRAM makers could hardly survive under this environment for more than a quarter's time as the price tag has edged to their variable cost level. In order to stop bleeding from red, they are forced to adjust their capacity and capex. Price of 512Mb DDR2 has resumed to US$1 mark amid news about some DRAM makers' planned annual facility maintenance and upcoming demand swell prior to Chinese New Year in early Feb.

Having seen DRAM spot prices appreciates by 15-20% recently, DRAM makers are confident to seeing that DRAM contract price to post a minimum of 2-3% sequential gain in 2HJan, as most vendors had already settled prices with suppliers in Dec.
DRAM spot price recap, Jan 14-21

Spot prices of both 512Mb eTT and branded DDR2 chips dropped below the US$1 level on Nov 7 and Nov 23, 2007. Prices hit bottom after trending downward for about a month's time, with eTT parts closed at US$0.75 on Dec 11 and the branded parts hit US$0.92 on Dec 18.

After hitting the price bottom, prices are expected to resume above US$1. Both chips found their prices surpassed the US$1 mark on Jan 17 and 18. As of Jan 21, prices of eTT part stood at US$1.09 and branded part at US$1.10. Price of eTT part once climbed to US$1.21 level.

Reviewing price trend during Jan 15-21, price of 1Gb eTT posted the highest growth at 23%, where 512Mb branded part also posted a sequential gain of 14.7%.

About DRAMeXchange

DRAMeXchange is a global leading provider of market intelligence, in-depth analysis reports and consultant services on major electronics components. Our company consists of 2 major research divisions---DRAMeXchange and WitsView, which cover the DRAM, NAND Flash, PC and display research sectors. You can learn more about DRAMeXchange by visiting www.dramexchange.com.

In the year 2000, the company started to deliver market intelligence services under the name of DRAMeXchange technology. This included the current business environment, real-time spot trading prices, market trends, capital spending and wafer capacity trends, the impact of DRAM/flash memory products on the market, and other relevant PC industry information.

To further expand its research, DRAMeXchange acquired LCD research institute WitsView in 2006 to provide insights on the display industry. 

About WitsView

WitsView is a subsidiary brand of DRAMeXchange, which provides prompt and credible market insights covering the quantitative pricing trend for both TFT-LCD panels and finished goods, industry updates and market intelligence. Founded in 2004, WitsView Technology Corporation is made up of a group of sophisticated industry analysts with years of experience, providing objective and strategic insights on the display industry. Additional information can be found at www.witsview.com.