President of Adata Simon Chen commented yesterday that as the increasing shipment amount in low cost computer market has injected energy into the DRAM industry, the market condition is gradually gaining momentum. According to him, the bit growth of global DRAM output is lower than 50%, however, the demand growth will exceed that number, and thus the demand-supply relationship will be improved. In addition, present inventory level is in a normal status. So he believed that the market condition for 2H08 will be much better than the first half. It is predicted by him that the demand and supply will reach a balanced point in July and even supply shortage will occur during 3Q and 4Q. To September, 1Gb DDR2 price will get to 3 US dollars. Industry makers will stop losing money in the second half of this year.

Besides, Simon Chen revealed that as the demand in the contract market is strong, some system factories have shifted their attention to the spot market, which will be helpful to reduce inventory level. He predicted that DRAM price rising extent will not be sharp but maintain gradual and slight range. The average price will ensure DRAM makers to stop losing money. Currently, the price gap between contract price and spot price is only 10%, if contract price continue to rise in June, spot price will be boosted too.