DRAM spot prices were up 6 percent to 7 percent from March 11 to March 14, researcher says.
Uncertainty surrounding the
horrendous March 11 earthquake and tsunami in Japan has disrupted some aspects
of the dynamic random access memory and NAND flash businesses in that stricken
Raymond James Equity
Research wrote in a media advisory March 14 that most DRAM players have ceased
"spot" price quoting activity since March 11 as a result of
uncertainty regarding manufacturing-equipment damage, power disruptions and raw-wafer
Japan's Shin-Etsu is a top
DRAM producer. Micron, the top-producing U.S. DRAM manufacturer, is based in
As a result of this
uncertainty, DRAM spot prices were up 6 percent to 7 percent from March 11 to
March 14, Raymond James said. "We suspect this dynamic to place upward
pressure on DRAM contract pricing," the market researcher wrote.
"With PC OEMs already
starting to worry about supply even before the quake/tsunami, the DRAM market
and, of course, the NAND market, could become more volatile in the near-term
before stabilization," the researcher wrote.
Micron, whose most recent
DRAM price is listed at $10.24, seems likely to benefit from the current
dynamic because its fabrication plants and back-end assembly/test locations are
not in Japan, Raymond James said. Micron is a high-ranking supplier of both
DRAM and NAND.
SanDisk, whose latest price
for NAND is $45.07, appears more vulnerable because it specializes only in NAND
and has the bulk of its manufacturing in Japan as part of its joint ventures
with Toshiba, Raymond James said.
The researcher said that no
structural damage has been reported at the joint-venture plants.