DRAM Pricing Not Expected to Rebound Until Economy Picks Up

Building a capable PC has turned into a stupid-cheap affair as components continue to fall in price. This is helped in large part by slumping DRAM pricing, which has yet to recover no matter how much DRAM makers would like it to. And it doesn't look like it will happen anytime soon.

According to Frank Huang, chairman of Powerchip Semiconductor Corporation (PSC), memory chip prices will continue to sag so long as the economy struggles, and isn't expected to start an upward swing until at least the second half 2009. Huang pointed out that DRAM prices have already dropped close to cost, forcing manufacturers to cut production. But despite a 20 percent production decrease by the end of the year, the effects on the market won't be seen until December, which will fall well shy of a rebound in DRAM pricing.

Take advantage of the low prices while you can, but if Huang's assessment proves correct, you needn't feel rushed.

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