DRAM prices to rise due to inventory replenishment?

The industry analyst believes that one reason for the increase is that some DRAM manufacturers had yield issues while transitioning to 40nm process technology. Fearing disruption in DRAM deliveries, it says some large pc OEMs turned to other DRAM suppliers to avoid potential disruption in their computer production plans. Those companies consented to somewhat higher prices, according to DRAMeXchange. It reports that price should continue to increase through the end of the second quarter, especially for commodity DRAMs. DRAM makers are shifting their capacities to mobile and server DRAMs to address the rising volume requirements from smartphone, tablet pc and cloud computing applications. That shift means less supply of commodity DRAMs, which could cause upward price pressure depending on the strength of demand. The analyst adds that prices could also rise because two DRAM suppliers had poor yields on 40nm production, which will result in a little less supply. While supply may diminish, many pc OEMs have begun to replenish DRAM inventory levels after reducing stockpiles earlier in the year. Some OEMS had less than one month of inventory and are now restocking, which will help boost prices, concluded DRAMeXchange.