Trade Resources Industry Views Tight Supply of PC DRAM Chips Is Set to Persist Until The Second Quarter of 2014

Tight Supply of PC DRAM Chips Is Set to Persist Until The Second Quarter of 2014

Tight supply of PC DRAM chips is set to persist until the second quarter of 2014, which will sustain memory price stability, according to memory module firm Adata Technology.

Adata added that the company expects to make gains in inventory value during the fourth quarter of 2013, as a result of more stable chip pricing.

The global supply of DRAM chips has been constrained following a September 4 fire at SK Hynix' China fab. With inventories held by PC OEMs now reduced, PC DRAM supply has fallen short of demand boosting prices for the memory recently.

Adata reported around NT$3 billion (US$101.9 million) in revenues for October 2013, up 10% on month and 28% on year. Sales of DRAM modules accounted for 54.1% of Adata's October sales, and those of NAND flash and other devices made up the remainder.

Adata's cumulative 2013 revenues through October increased about 20% from a year earlier to NT$28.03 billion.

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PC DRAM Shortage to Persist Through 2Q14, Says Adata