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DRAM stocks up on product price jump

DRAM stocks up on product price jump

Taipei, Aug. 14 (CNA) Shares of DRAM chip makers got a boost Wednesday from an almost 8 percent product price hike a day earlier on hopes that the industry will benefit from peak season effects in the third quarter, dealers said. Buying also spread to DRAM module suppliers as investors had high hopes that suppliers of mobile devices, in particular smartphones and tablet computers, will launch new models in the current quarter to stir up buying, the dealers said. Shares of Inotera Memories Inc. rose 7 percent, the maximum daily increase, to close at NT$13.05 (US$0.44) with 27.67 million shares changing hands, while shares of Nanya Technology Corp. gained 1.26 percent to end at NT$4.01 on trading volume of 4.25 million shares. Inotera and Nanya are the DRAM manufacturing arms of conglomerate Formosa Plastics Group. Among the gaining DRAM modules, shares of Transcend Information Inc. added 1.87 percent to close at NT$87.30, and shares of ADATA Technology Co. ended up 2.44 percent at NT$71.30. DRAM shares regained momentum soon after the local bourse opened in the wake of the soaring price of the benchmark DDR3 2Gb DRAMs in the spot market, and buying in these stocks continued into the end of the session, the dealers said. According to DRAMeXchange, a memory market research institute of Taipei-based TrendForce Corp., the price of the DDR3 2Gb rose 7.9 percent in a single day Tuesday to US$1.626. Before the significant recovery, the benchmark DRAM price had fallen about 24 percent since mid-June as a result of inventory adjustments after buyers had built up stocks aggressively. The 24 percent fall showed that demand for personal computers remained slow, but as hopes have been raised that PC shipments will revive and that smartphone and tablet sales will continue to grow on peak season effects, DRAM buyers rushed to resume buying to send product prices sharply higher. Ahead of the price hike, ADATA Technology said the recent DRAM price corrections could be short-lived, and that with little new production capacity to be added, memory chip prices are expected to stage a rebound and continue to grow. In a recent research report released by IC Insights, the DRAM average selling price for 2013 is expected to rise 40 percent from a year earlier in reflection of reduced supply on a slower pace in new capital expenditure investments. (By Jackson Chang and Frances Huang)


Updated : 2021-01-19 20:49 GMT+08:00