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Posted : 2011-01-25 10:22
Updated : 2011-01-25 10:22

DRAM prices tumble to 22-month low on weak demand

Prices of dynamic random access memory (DRAM) chips, a key part in personal computers, continued trending downward to a nearly two-year low, indicating still fragile demand for personal computers, industry data showed Tuesday.

The contract price of 1-gigabit DDR3 DRAM tumbled to the 22-month low of $0.88 this week, down 3.3 percent from earlier this month, according to Taiwan-based DRAMeXchange Technology Inc., which tracks prices of computer memory chips.

DRAM devices temporarily hold data and help computer processors run multiple programs at the same time. The 1-gigabit DDR3 DRAM is among the flagship products of Samsung Electronics Co., the world's largest memory chipmaker and the No. 2 supplier of semiconductors after Intel Corp, and is also one of the memory chips in the highest demand.

The lower memory chip price is attributed to weak demand for personal computers and aggressive output increase among memory chipmakers earlier last year when the sector was optimistic about the global PC demand, according to analysts. Second-tier chipmakers in Taiwan and Japan may be forced to cut their production as lower chip prices hurt their bottom lines, they said.

Prices of liquid crystal display (LCD) panels, widely used in televisions, computer monitors and mobile devices, also logged a decline for 10 straight months since April, according to market researcher DisplaySearch, suggesting that the global demand for TVs is showing little sign of recovery. (Yonhap)

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