Specialty DRAM in Tight Supply, Prices Likely to Climb

Strong demand for consumer electronics such as TVs, smartphones, and tablets are squeezing 512 Mb DDR and 1 Gb DDR2 memory chips into tight supply. Production cutbacks that were encouraged by oversupply in recent quarters add to a scenario in which memory prices could be seeing an upward spike.

According to Digitimes, DRAM manufacturers were able to gradually compensate a decline in memory demand in the PC sector with increasing demand from consumer electronics.

The publication's sources stated that 512Mb DDR parts primarily used for TVs, set-top box and networking applications will especially be in short supply and that the shortage is likely to "persist through March," when production will have caught up with the market.

The 1 Gb DDR2 shortage is apparently related to manufacturing transitions as production is shifting and some major suppliers are no longer manufacturing this memory type. According to Digitimes, Hynix Semiconductor is the world's largest supplier of specialty DRAM memory.

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