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A large batch of DRAM at a greatly reduced price went to Kingston?
As you know, there is an overproduction in the DRAM market, which entails a decrease in prices. This is pushing some manufacturers to leave the market. For example, last fall, when DRAM spot prices hit an all-time low, Hynix Semiconductor was forced to leave the spot market.
Interestingly, Hynix blamed Taiwanese DRAM manufacturers for the overproduction situation. In turn, the head of the Taiwanese Powerchip Semiconductor Corporation (PSC) responded with a counter-accusation against Hynix.
The PSC was in the spotlight again last week. According to a source with reference to representatives of the industry, this manufacturer has a large weight in the spot market, offered Kingston Technology a large batch of DRAM chips at an extremely low price.
About a week ago, PSC began to suspend DRAM shipments, and most recently its inventory level dropped to very low levels. Industry sources explain this by selling roughly 10-15 million 1Gb DDR2 chips to Kingston. The chips were allegedly sold for $ 1.50-1.60. At the same time, according to DRAMeXchange, the spot price of 1 Gb DDR2-667 chips at that time was $ 1.95. To estimate how large the batch sizes are, it is enough to know that PSC supplies 40 million monthly to the spot market. chips, accounting for 70-80% of the total market.