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Semiconductor industry takes vigor back in one year

Posted July. 04, 2016 07:35,   

Updated July. 04, 2016 08:08

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The prices of memory semiconductor chips such as DRAM and NAND flash chips are showing signs of recovery after its plummeting prices since early last year. The semiconductor market was mired in supply glut amid global recession, but now is taking its vigor back. After its heavy dependence on memory chips, Korean semiconductor industry is also expected to attain satisfactory performance in the third quarter.

According to DRAMeXchange, a research division of TrendForce, on Sunday, the average contract price for DDR3-1066 4GB/512Mx8 has recorded 1.25 dollars on Thursday, which was its average price in May. This is the first time for the contract prices to stop falling after its decline by 6 percent month-on-month since early this year. DDR3-1066 4GB chips account for more than 20 percent of total transaction amount of DRAM, and are regarded as the barometer of the DRAM market. The contract price of DRAM kept declining since September last year when it fell below 2 dollars.
 
The prices of Nand flash, whose 3-month contract prices had been 2.02 dollars after its decline stop in April, rebounded last month. The average contract prices for 64Gb, 8Gx8 MLC NAND flash memory chips recorded 2.24 dollars on Thursday, an increase of 10.89 percent from the previous month.

“The prices of memory chips are rebounding as global memory chips businesses are gradually expanding the capacity of their memory chips, while supply gut has been eased, which was affected by the industry’s conservative investment in the wake of slowing semiconductor market,” said a source in the domestic memory chips industry.