Lithography shrink rate stops DRAM price drop

Thanks to little advances made in semiconductor manufacturing this year, says IHS, DRAM prices are going to stabilise.

For a good while prices have been dropping. Although there was a heavy fall of 14.2 percent in the first quarter of this year, in the second quarter that turned to 12 percent.

According to analysts at IHS, rate of decline is going to reach nine percent by the third quarter and four percent before the year is through.

That’s because DRAM prices depend quite heavily on shrinking manufacturing technology. There is also a slowing in manufacturers turning to the increasingly advanced lithography.

Geometries for manufacturing DRAM did shrink by 5.6 percent at the beginning of the year, sliding to 5.2 percent for Q2. It will reach 4.8 and 3.7 percent in the third and fourth quarters respectively. By 2012, the shrink rate will dwindle to 2.9 percent in the first quarter.

Lithography will then shrink to between 3.8 percent to four percent for the rest of that year.
DRAM cost reductions will slow throughout the rest of 2011 and 2012 as capital expenditures decline by approximately 30 percent throughout this year.

In 2013, it is predicted cost reductions will reach past heights as lithography begins to shrink again.