DRAM Prices Rise in 2010, Says Elpida

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DRAM industry will see higher prices per chip this year than in the last three years, says Japan's Elpida Memory.

Elpida will spend US$1 billion on new production lines and transfer chip production technology as fine as 40 nanometers and even 35 nm to its new Taiwanese partner, ProMOS Technologies (so the company can produce DDR3 on behalf of Elpida).

Elpida thinks demand for DRAM in 2010 may still rise 50% while supply will only increase 40%.

Most DRAM makers have been selling chips at a loss since H2 2007 and mainstream DRAM chips hit bottom late in 2008 at around US$0.50, far below the cost to make each chip. Mainstream DRAM prices now are around $2.50 per chip, closer to true cost of production., says Elpida.

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