SAN FRANCISCO, USA: DRAM memory chips are facing shortages, according to the market research firm Semico Research Corporation.

The ramifications of a sluggish manufacturing capacity output and a lack of capital spending over the last 24 months, combined with enhanced demand driven by a strong PC market, has resulted in a positive environment for DRAM pricing, Semico Research said. The demand for DRAM will continue to surpass supply in 2010, resulting in shortages.

DRAM average selling prices (ASPs) have gone up by 108 per cent since bottoming out in December 2008, and show no sign of coming down. From October 2009 through January 2010, DRAM ASPs rose by 18 per cent.

Semico Research Corporation had, in December 2009, projected an industry-wide 40 per cent rise in DRAM revenue. However, because of the market conditions and continued strengthening of the ASPs, revenues from DRAM could grow by between 60 per cent and 70 per cent in 2010, Semico Research said in a report titled ‘2009 In Review, DDR3 Crossover, DRAM Prosperity and Shortages In 2010’.

A few days ago, FBR Capital Markets had said in a report that many categories of electronic components are now facing shortages, which has prompted a number of suppliers to jack up prices.