Elpida bankruptcy brings unusual stability to DRAM pricing, says an IHS iSuppli
June 28, 2012 // Julien Happich
Pricing in the dynamic random access memory (DRAM) market has become markedly less volatile since the February bankruptcy of major supplier Elpida Memory Inc., deviating from long-term trends in statistically significant ways, according to an IHS iSuppli Market Brief.
DRAM pricing appears to have flattened since the announcement by Elpida that it owed billions of dollars in debt, even though the Japanese maker had been the third-largest DRAM supplier in terms of sales even as late as the first quarter this year.
In the 12 week period after Elpida's February 27 announcement, the IHS iSuppli DRAM Price Indexa weighted average of DRAM spot pricestayed within a narrow band, hovering between 235 at the start of the post-announcement period and 243 on May 21. With a starting value of 1,000 at the time it was first published in 2002, the Index gives a measure of how much DRAM prices are dropping.
In comparison to the time above, the spread in the DRAM Index was much larger in a similar 12-week span prior to bankruptcy, ranging from 180 at the beginning of the pre-announcement phase up to 216 at the close of the same period, or a difference of 37 points.
Another measure of DRAM pricing changes, the IHS iSuppli Momentum Indicator, has also stayed at the 50 percent level since the announcement, an indication of neutrality with no upward or downward momentum.
The table below shows both the DRAM price index and Momentum Indicator taken in various times between and after the Elpida eventon December 5, at the beginning of the 12-week period before the announcement; on February 20, one week before the actual bankruptcy notice; on March 5, at the beginning of the period after the announcement; and on May 21, the end of the 12-week period after the bankruptcy filing.
With things still very much up in the air on how events will unfold, industry participants seem to be waiting for some indication of what the resulting industry structure will be like after an Elpida takeover is finalized, said Dee Nguyen, memory analyst at IHS. As a result, the current pricing environment appears to reflect this mood with the DRAM market eerily quiet, accompanied by visibly less pricing volatility atypical of the industry. Clearly then, a direct correlation exists between decreased DRAM pricing volatility and Elpidas announcement given that the current period of flat DRAM pricing occurred right after the bankruptcy notice.
Europe leads world in chip market growth
September 02, 2014
In July the European region showed the strongest year-on-year growth of all regions tracked by the World Semiconductor Trade ...
Radar-based blind spot assist to eliminate collisions during turning
German company wins bid to crash cars in China
European semiconductors sales up 14.9% this year
EE Times' annual salary & opinion survey report
Toshiba announces image sensor strategy
September 01, 2014
Toshiba Corp. has issued a press release detailing its strategy for the image sensor market.
DelfMEMS promotes CFO to CEO
Sensata to pay $1-bn for tire pressure sensor leader
ADCs for high dynamic range – successive-approximation or sigma-delta?
- Power Modules: The New Super Power
- Flexible Performance for Network Security Appliances
- Digital Power Management Reduces Energy Costs While Improving System Performance
- Using RF Recording Techniques to Resolve Interference Problems
InterviewA question of Europe
Sir Peter Bonfield sits on the board and has advisory roles in many international companies and universities. With more than 45 years of experience in electronics, computers and communications, here he ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
This month, Trinamic Motion Control is offering you to win one of four TMCM-1043 development kits for its highly integrated, NEMA 17-compatible TMCM-1043 stepDancer stepper motor module.
Offering designers an easy-to-use PC-based GUI that allows one-click modification of motor drive current, micro-stepping and other key parameters, the intuitive kits are custom designed and developed for...MORE INFO AND LAST MONTH' WINNERS...
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.