DRAM shortage pushes prices up

The DRAM supply shortage isn’t getting better and memory maker Inotera now believes it will drag on until the end of the year. Strong demand for smartphones and tablets is to blame, and prices are going up as well.

Inotera believes the drought could even extend into the next year. The average price of benchmark DDR3 4GB modules already rose 13 percent last month according to DRAMeXchange. In fact, the price of DDR3 4GB DRAM has already gone up by about 70 percent in 2013, reports Taipei Times.

DRAMeXchange said demand for DRAM is starting to pick up, reversing an extended period of oversupply. However, the shortage is not bad news for memory makers.

Inotera is hoping to do much better in the second quarter than in the first quarter, in which it managed to narrow its net loss. Memory maker Nanya was profitable in the first quarter and it is reporting that its average selling prices for Q1 rose 30.5 compared from the fourth quarter.

Although the PC slowdown did not help memory makers, phones, tablets and next-gen gaming consoles should help drive demand up and mitigate oversupply issues.