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Tuesday, 29 November 2011 08:32
Kingston to Help Elpida and Toshiba Reduce Memory Inventory
The DRAM market has been in a steady downfall lately because of the oversupply of memory products leading to the extreme price cuts and very low income for the manufacturers. Now, it seems manufacturers are scheming to help each other get through the hurdle at least in the case of Kingston, Elpida and Toshiba.
Kingston now has been reported by DigiTimes to be planning to buy memory chips from both Elpida and Toshiba on a large scale to help the two suppliers reduce their overflowing stockpiles by the end of 2011.
If Kingston does proceed with the plan, then it will be rewarding for both ends. The two suppliers get to reduce their inventory and gain additional income while Kingston gets to develop high-performing chips with reasonable prices. After all, both Elpida and Toshiba produce memory chips that are used for high-end DDR3 memory modules and with Kingston buying those in massive scales, there will surely be some further reduction in prices just to exhaust the inventory.
The Korean memory chip supplier Hynix Semiconductors has also been reported to be another supplier whom will also receive aid from Kingston through buying memory chips on a large scale.
Meanwhile, other suppliers have started cutting down their production scale resulting to a minor rebound in the prices of their memory products but the results are still not significant enough to yield noticeable effects in the retail market.