As the spot price of DRAM keeps heading south and contract quotes remain weak, the share prices of major DRAM makers have lacked upside momentum due to the poor pricing.

The spot price of DRAM still remains weak in late October after a short-lived rebound seen during the week of October 15 to 22. Price of the mainstream 512Mb DDR2-667 is still hovering at around US$1 and once dived below the US$1 mark. Some chipmakers are even quoting as low as US$0.50, according to industry sources.

DRAMeXchange explained that a swell in the supply of effectively tested (eTT) chips, conservative consumption among marketers, intensifying financial pressure during the later part of each month, as well as the fresh eTT supply that did not ease completely, as the major factors for the downward price trend.

The latest revealed contract prices, in the meantime, showed a soft pricing environment on the PC OEM side. Quotes recorded in the first half of November show a further drop, but with a weakening price drop magnitude as projected by DRAMeXchange.

Since DRAM makers are not reaching a consensus for expansion trim, DRAM contract prices may be subject to a further drop in November, DRAMeXchange said. But as the magnitude of the drop is already strong in October, DRAM makers who tend to be more conservative about price adjustment should limit the drop in December, the firm added.