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DRAM oversupply continues

By Derek Sooman

On November 11, 2005, 11:26 AM

DRAM output continues to grow, with oversupply in the DDR and DDR2 segments. The effect of this can be expected to weigh on memory price trends, in both the contract and spot markets. Whilst Taiwan and US makers remain fairly stable in output growth, Japan and Korea vendors report escalating output.

Contract prices in the second quarter of November should drop further as some PC OEMs may receive special offers from memory makers. The highly volatile spot market should see limited transactions, as heavy trading may expose traders to dramatic price drops, of up to 5% in single day, InSpectrum predicted.

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