Memory Prices Jump After Major Manufacturer Files for Bankruptcy

Paul Lilly

Germany-based chip maker Qimonda, who held a 10 percent share of the DRAM market in Q3 2008, becomes the first major memory chip maker to file for bankruptcy following the rapid decline of memory chip prices. As a result, DRAM pricing has spiked by as much as 26 percent, a trend which is expected to continue in the short-term.

Qimonda continues to operate, but for how long is anyone's guess. The company's bankruptcy filing follows a failed attempt to secure investment funds, and because Qimonda owes Inotera Memories and Winbond Electronics millions of dollars, the two chip partners refuse to ship any more chips to the bankrupt company.

Other chip makers might not be far behind Qimonda. In November 2008, DRAMeXchange stated "the DRAM industry has entered the key adjusting state of 'reduce or retire,'" and according to iSuppli, many of the world's top 10 memory chip suppliers will see major declines in revenue.

Image Credit: Qimonda

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