iSuppli: DRAM revenue falls, market disappears

According to DRAMeXchange, an online clearing house for the chips, the portion of DRAM sold by contract rose to 77% in August from 67% in January, while the spot market contracted to 23% from 33%. During the most recent pricing talks, contract prices rose only 1.

According to DRAMeXchange, an online clearing house for the chips, the portion of DRAM sold by contract rose to 77% in August from 67% in January, while the spot market contracted to 23% from 33%. During the most recent pricing talks, contract prices rose only 1.2% for the major varieties - double data rate chips that run at speeds of 266-, 333-, and 400-megahertz - according to DRAMeXchange, while market watchers were expecting a 5% rise. Contract prices are negotiated every two weeks.

iSuppli has forecast DRAM revenue to rise 8.3% on year in 2003 to $16.7 billion.

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