Falling prices for memory bound

Despite some price stabilization DRAM-memory modules in the first half of January, continuing market pressure has forced manufacturers to carry out 5% decline in prices during the first quarter of 2008. The manufacturers of memory modules already revising their marketing strategies, and one of the leading companies - ChipMOS Technologies in December of last year has reduced the purchasing prices for some customers. This was followed by Powertech Technology (PTI) which began to cut prices in January 2008.

Commenting on market conditions, management ChipMOS stated that sales will grow by 5-9% in the quarter and year-end total increase will amount to 23-27%. Demand for DRAM and NAND flash memory to increase by 5% and 10% respectively. Given the seasonality of consumption of this product in the first quarter of this year, analysts ChipMOS, despite the pre-holiday slump, plans gradual increase of 5-6%. Gradually, the production of DRAM-memory goes into sector 1 GB modules, due to consumer demand for such products is also observed active modernization of production lines in order to run the 70 nm process.

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