Market research iSuppli recently released a report that the production costs of DRAM memory chips in the second quarter of this year suffered the first increase since the third quarter of 2006, which also triggered concerns about manufacturers spending on memory chips.
From 2005 onwards, the production costs of memory chips are generally decreasing by an average of 9.2% per quarter. However, the average price per GB DRAM chip in the second quarter of this year reached 2.03 US dollars, a slight increase compared to 2.00 US dollars in the previous quarter. Although the price increase is very small, it completely subverts the rules of the previous lineage.
In fact, the increase in the cost of production of memory chips in the second quarter did not come suddenly. Starting from the third quarter of 2009, the average reduction in the cost of DRAM chips in the quarter has been only 1.7%, far less than the previous 9.2%.
iSuppli said that in the past two quarters, the cost reduction of DRAM chips once exceeded 3%, but in the second quarter it changed everything. Taking the first quarter as a reference point, if we follow the law of previous price declines, the DRAM chip production cost in the second quarter will be reduced by 21% compared to the actual cost.
Mike Howard, a senior analyst at iSuppli DRAM, said: “The two key players that contributed to the rise in DRAM production costs in the second quarter are Elpida, the world’s third-largest DRAM maker, and Taiwan’s Nanya Technology, the fifth largest manufacturer. DRAM production costs for South Asia Technology It has risen by 4%, while Elpida has risen by 11%.
The current high cost of South Asia's technology is partly due to the dilemma faced by process upgrades, which leads to lower product yields, which in turn raises the cost of chip production. Once South Asia Technology has solved the problem of process upgrades, the cost of the next few quarters will be greatly reduced.
Unlike South Asia technology, Elpida will have to make mistakes in its decision-making. After increasing the outsourcing of product production, Elpida's cost structure has also changed. Elpida purchased DRAM chips directly from its Taiwan partners in the second quarter, but the costs above it exceeded the cost of the original production. However, due to the limited production capacity of Elpida, Elpida can only do so now.
However, with Elpida, South Asia Technology and other manufacturers adjust their cost structure, the former's production costs will eventually return to its original level. In particular, when most manufacturers adjust their strategies to upgrade immersive lithography and manufacturing processes, the cost of DRAM chips will return to the previous long-term decline.
From 2005 onwards, the production costs of memory chips are generally decreasing by an average of 9.2% per quarter. However, the average price per GB DRAM chip in the second quarter of this year reached 2.03 US dollars, a slight increase compared to 2.00 US dollars in the previous quarter. Although the price increase is very small, it completely subverts the rules of the previous lineage.
In fact, the increase in the cost of production of memory chips in the second quarter did not come suddenly. Starting from the third quarter of 2009, the average reduction in the cost of DRAM chips in the quarter has been only 1.7%, far less than the previous 9.2%.
iSuppli said that in the past two quarters, the cost reduction of DRAM chips once exceeded 3%, but in the second quarter it changed everything. Taking the first quarter as a reference point, if we follow the law of previous price declines, the DRAM chip production cost in the second quarter will be reduced by 21% compared to the actual cost.
Mike Howard, a senior analyst at iSuppli DRAM, said: “The two key players that contributed to the rise in DRAM production costs in the second quarter are Elpida, the world’s third-largest DRAM maker, and Taiwan’s Nanya Technology, the fifth largest manufacturer. DRAM production costs for South Asia Technology It has risen by 4%, while Elpida has risen by 11%.
The current high cost of South Asia's technology is partly due to the dilemma faced by process upgrades, which leads to lower product yields, which in turn raises the cost of chip production. Once South Asia Technology has solved the problem of process upgrades, the cost of the next few quarters will be greatly reduced.
Unlike South Asia technology, Elpida will have to make mistakes in its decision-making. After increasing the outsourcing of product production, Elpida's cost structure has also changed. Elpida purchased DRAM chips directly from its Taiwan partners in the second quarter, but the costs above it exceeded the cost of the original production. However, due to the limited production capacity of Elpida, Elpida can only do so now.
However, with Elpida, South Asia Technology and other manufacturers adjust their cost structure, the former's production costs will eventually return to its original level. In particular, when most manufacturers adjust their strategies to upgrade immersive lithography and manufacturing processes, the cost of DRAM chips will return to the previous long-term decline.
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