DRAM memory prices are getting lower

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If anyone is planning to make a new computer, he will surely be pleased with the ever increasing price drop in DRAM modules. This is not only due to weak demand, but also to streamlining the production process and increasing the capacity of the factories, which may mean that prices will continue to fall.

Nomura Equity Research analysts believe that we can expect further drops in memory modules as warehouse inventories are increasing, while demand is currently not high. Currently, the contract price for the 4 GB DDR3 1600 MHz module is about $ 2.75, and the 4GB DDR3 SO-DIMM costs $ 24.5 and is $ 3 lower than May this year.

In addition, the situation is complicated by the fact that memory manufacturers are switching to 20 nm manufacturing, which results in even lower cost of module production. The new process has already gone through Samsung, but other companies are also planning to follow in the footsteps of the South Korean giant, which will allow them to lower the price of their products.

Another issue is the increase in production capacity of Asian factories. The Hwaseong line-17 production line, which is based in Samsung, is able to produce 80,000 nm of silicon wafers each month, with as much as 60,000 dedicated to computer memory.

Hynix, on the other hand, plans to start producing 300,000 nm of wafers per month in the third or fourth quarter of this year. Micron is only turning to 20nm technology and will soon begin production, which will further increase the availability of modules and will further reduce their prices.