Prices set to stabilise in the new year

DRAM shortage ‘to continue until Q2 2014’

The DRAM memory shortage will continue until Q2 2014, says memory firm Adata Technology.

Prices crept up following the Hynix factory fire in China in September, when a UK retail source told PCR that prices looked like they’d remain high until the end of this year at least, due to demand outstripping supply.

PCR had previously heard from our source that the shortage would stabilise in Q1 2014, but it seems the tight supply of DRAM chips will persist longer than expected, reports Digitimes.

The factory fire wasn’t helped by a 6.7 magnitude earthquake in Taiwan that halted operations at Taiwan Semiconductor Manufacturing Company (TSMC), reports Business Korea.

“The high [DRAM] price is likely to continue until the restart of the operation of the Wuxi plant,” said IBK Investment and Securities analyst Lee Seung-woo. “The balance in supply and demand will be found only after the recovery.” 

Adata said it expects inventory value to rise further during Q4 2013.

Revenues at the company reached around $101.9 million during October 2013, up ten per cent month-on-month and 28 per cent year-on-year. Sales of DRAM modules accounted for over half of Adata’s sales in October (54.1 per cent).

One retailer previously told PCR they are "having nightmares" with DDR memory due to the fire, with "panic buying and brands profiteering off the back of it".

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