A report by DRAMeXchange says that with prices already below the manufacturing costs, major DRAM makers are unwilling to cut their prices further.
Although DRAM makers still have problems in clearing out their excess inventory, urgent market observations show the DDR2 chip price possibly bottoming out, the report said. This could mean that prices are starting to rise again.
Last week the cost of DDR2 eTT chips leapt 12.5 per cent, which is the highest it has been for a while. DRAMeXchange believes the persisting DRAM price declines in May will cause them to post a loss in this quarter.
However although DRAM makers must still ship their chips in May, they indicated no additional price cuts would be made, due to the continuing losses. With prices already dangerously low, Hynix has already started to switch some of its DRAM production to NAND Flash instead.