Kinston yesterday (June 4th) made comment that the depression in DRAM industry has finally came to an end and demand as well as price quote will edge up simultaneously in the third quarter. Meanwhile, Taiwan leading DRAM maker Nanya also indicated that contract price will rise slightly in June, with the rising extent predicted to be within 10%. And with the arrival of hot season, the contract price will rise sharply after July.

According to Kinston, the period from 2H07 to 2Q08 is the bottom for the industry. Recently, the market warms up gradually and demand-supply relationship is expected to turn better. Thus the depression in this round will finally come to an end at the end of Q2. The market condition will gradually resume normal status in Q3.

Along with the reduction in the supply part, the period of oversupply has pasted, Kinston emphasized, but as the growth rate for market demand is limited, the price will not rise sharply but only to edge up with slight extent. The company noted that contract price in June will stay flat or rise slightly. As to the spot price, pressure still exists because June is the traditional low season and the end month of the second quarter. While after July comes, contract and spot price will possible to rise substantially together with the arriving of the hot season in summer vacation.

Nanya also hold an optimistic perspective on the DRAM market condition in the second half of 2008. The company believed that although contract price rising extent in June will be limited, the rising potential after July will be strong. In addition, the popularization of low-cost PCs will pull the demand for DRAM to rise, driving DRAM market to become better.