Hynix Price Hike Could Snap DRAM Market Out Of ComaHynix Price Hike Could Snap DRAM Market Out Of Coma

South Korean memory chipmaker Hynix Semiconductor Inc. raised its contracted prices for the third time in a month.

information Staff, Contributor

January 5, 2002

1 Min Read
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South Korean memory chipmaker Hynix Semiconductor Inc. (HXSCY-Nasdaq) raised its contracted prices for the third time in a month. After a year in which the average price of DRAM chips fell more than 80%, analysts say Hynix's increases could help a struggling industry. Investors shared that optimism, driving up chip stocks last week, most notably that of Micron Technology Inc., which is considering an alliance with Hynix. A good chunk of the blame for the DRAM price spiral falls on Hynix, says analyst Frank Dzubeck, president of Communications Network Architects. "It's like the pariah of the entire industry," Dzubeck says, thanks to its lowball price policy. A Micron spokesman declined to specify the nature of the company's discussions with Hynix. He did say, however, that if buyers accept Hynix's price increase, Micron likely will follow suit.

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