Taipei, Tuesday, December 1, 2015 16:13 (GMT+8)
partly cloudy
DRAM to drive up average commodity chip pricing, says iSuppli
Press release; Jessie Shen, DIGITIMES [Wednesday 5 August 2009]

Average global pricing for commodity electronic components is expected to rise by 2.3% sequentially in the third quarter of 2009, thanks to shortages and resulting price hikes for memory chips, according to iSuppli. With DRAM accounting for 9.1% of global semiconductor revenues in 2008, the price increase in this area is having an inordinate impact on overall component costs.

"Overall component pricing is being heavily impacted by price hikes for DRAM, spurred by a shortage of DDR3 parts," said Eric Pratt, vice president, pricing and competitive analysis, at iSuppli. "Overall DRAM pricing is expected to rise by 10.2% in the third quarter." Other areas seeing price increases include analog ICs, discretes and filters.

Following declines of 8.4% in fourth-quarter 2008, 9.2% in first-quarter 2009 and 5% in second-quarter 2009, overall prices are expected to undergo a short-term rise in the third quarter, iSuppli said. Most components actually are expected to experience price declines in the third quarter, but the average is being skewed by DRAM. However, the prices will revert to declines in the fourth quarter, with a moderate 0.2% decrease, iSuppli estimated.

Pricing will decrease moderately during the third quarter for most major memory segments, according to iSuppli. NAND flash will experience a 0.3% decline. NOR pricing will decrease by 1.1%, whereas EEPROM pricing will remain flat. Declines also are expected for standard logic ICs, crystals, oscillators, connectors, resistors and magnetics, said the research firm. Meanwhile, an overall decline is expected for capacitors.

Despite these decreases, the overall rise indicates pricing conditions are changing for commodity components, iSuppli said. "iSuppli previously expected price decreases would be of a greater magnitude in the third quarter as commodity component suppliers cut tags to capitalize on rising demand," Pratt said. "However, semiconductor suppliers have scaled back their capacity significantly during the downturn. This means supplies are somewhat tighter than expected, preventing prices from declining as much as expected."

iSuppli: Average sequential pricing trends for commodity electronic components, 3Q08-2Q10

Source: iSuppli, compiled by Digitimes, August 2009

Realtime news
  • Taiwan panel makers calling on China government for component tariff reductions

    Displays | 5min ago

  • HMI 2015 EPS likely to fall 20%, says report

    Bits + chips - Stockwatch | 7min ago

  • More Taiwan firms step up development for large-size touchscreen ICs

    Bits + chips | 29min ago

  • Taiwan 4G user base over 10 million at end of October, says NCC

    Mobile + telecom | 31min ago

  • Samsung Display showing signs of surpassing LG Display in revenues

    Displays | 34min ago

  • Smartphone panel suppliers to increase LTPS capacity and turn further to Full HD market in 2016, says WitsView

    Displays | 39min ago

  • LED market saturation to drive industry to seek profits in new applications in 2016, says LEDinside

    LED | 43min ago

  • Intel pushing new entry-level PC processors in 2Q16-3Q16

    IT + CE | 48min ago

  • Wistron lands tourism-related cloud computing service orders in Southeast Asia

    IT + CE | 58min ago

  • Digitimes Research: Global tablet shipments to drop less than 5% in 2016 thanks to large-size models

    IT + CE | 1h 12min ago

  • 158 workers in Hsinchu Science Park laid off in November

    Before Going to Press | Nov 30, 22:45

View more
China Internet TV and OTT market developments
Taiwan server shipment forecast and industry analysis, 2015
2015 global notebook demand forecast
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.