PC makers scared of DRAM shortage

Digitimes  is reporting that top PC vendors are running around banging on the doors of Taiwanese DRAM makers desperately trying to shore up supplies.

For a while people in the know and strokers of beards have been predicting that there will be an extreme shortage of DRAM.

Now apparently Dell, Asustek and Sony are trying to get Taiwanese produces to give them three-month contracts that guarantee DRAM supply.

Each of the PC vendors is seeking a supply of DDR2 and DDR3 totalling 20-30 million chips, and their suppliers will see their capacities fully loaded through the end of June.

But the suppliers are not that happy with the plan as it involves the PC Vendors effectively double ordering and will result in them having too much RAM on hand.

This means that when the shortage of DRAM bites they will not order anything. Prices will tumble and the chipmakers will have to shut down production capacity.

With fears of a shortage, the average spot prices for branded and effectively tested (eTT) 1Gb DDR2 memory are up 0.23 percent.