Monday, February 2nd 2009

DRAM Prices Soar Post Qimonda Bankruptcy Filing

Late last month, DRAM major Qimonda announced insolvency. This company now has a month's cash left to carry on operations, before having to dissolve its assets. The company is reportedly looking for buyers. The news of Qimonda's departure in the making, for the industry didn't have immediate repercussions post announcement, since it coincided with a week of holidays on the occasion of the Chinese Lunar New Year.

When the traders returned to work after the holiday, DRAM prices shot up due to widespread concerns over the departure of Qimonda disturbing supply-chains. The price of the DRAM chip used as a standard to gauge DRAM prices, a common DDR2-667 1Gbit (128MB) chip, rose by as much as 27% to US $1.08, as measured by DRAMeXchange, a company that runs online DRAM chip stock clearance sales. Analysts at Gartner predict short-term and long-term implications of Qimonda's exit: on the short-term, DRAM prices will rise as the fall of Qimonda will disturb supply-chains. On the long term though, the market will stabilize since it is still saturated with DRAM over-supply even without Qimonda. It isn't a good time to buy DRAM chips, as a result of which, other weaker DRAM companies may also file for bankruptcy, disturbing supply-chains.Source: InfoWorld
Add your own comment

14 Comments on DRAM Prices Soar Post Qimonda Bankruptcy Filing

#1
a_ump
wow, who'd have thought that a memory chip manufacturer such as Qimonda would go bankrupt.....i always thought most of those companies were a good distance in the clear :wtf:
Posted on Reply
#2
WhiteLotus
Wow that is bad, shame that they couldn't stay in the market for any longer. A lot of things are going to increase in price now that's for sure.
Posted on Reply
#3
newtekie1
Semi-Retired Folder
It seems to me this is the perfect time to buy DRAM, at least for the consumer, as prices are likely to go up.
Posted on Reply
#4
suraswami
sorry to hear.

I have seen their chips on Video cards, but never on Ram. Do they sell under different brand or seal?
Posted on Reply
#5
rpsgc
by: suraswami
sorry to hear.

I have seen their chips on Video cards, but never on Ram. Do they sell under different brand or seal?
Infineon.
Posted on Reply
#6
Polaris573
Senior Moderator
Oh boy. I was going to buy some more RAM this week. I better do it fast before prices go up at retailers.
Posted on Reply
#7
Exavier
I assume that's bad news for new stock of release products like the 48xx series? what will be used instead, elpida? do they even do vram?
Posted on Reply
#8
ShadowFold
Samsung still makes good GDDR right?
Posted on Reply
#9
btarunr
Editor & Senior Moderator
by: ShadowFold
Samsung still makes good GDDR right?
Yes, and Hyundai (Hynix). Those Korean companies will dictate terms in the graphics DRAM market now. :shadedshu
Posted on Reply
#10
tkpenalty
by: btarunr
Yes, and Hyundai (Hynix). Those Korean companies will dictate terms in the graphics DRAM market now. :shadedshu
Doesn't worry me, its actually better. No more way overvolted RAM that runs as hot as a bbq.
Posted on Reply
#11
kiriakost
by: newtekie1
It seems to me this is the perfect time to buy DRAM, at least for the consumer, as prices are likely to go up.
The hard part is to find a consumer with cash at hand . :laugh:
Posted on Reply
#12
hat
Maximum Overclocker
Well, all good things must end. I guess I should be happy I got 8GB for 90 bucks, it's already over $100 now, I wonder how much more it will climb?
Posted on Reply
#13
rpsgc
Good thing I followed my gut instinct and bought a second 4GB kit a couple of weeks ago. It was dirt cheap, I figured prices weren't going anywhere but up from then on, I guess I was right.
Posted on Reply
#14
zads
by: rpsgc
Infineon.
Infineon -> Qimonda -> Aeneon
Aeneon is the consumer-product,
Qimonda is the chip maker (they sell their chips to companies like OCZ, Corsair, etc),
Infineon is the parent company
Posted on Reply
Add your own comment