The price of 1Gb DRAM memory has fallen below US$1, the lowest since last April. According to market researcher DRAMeXchange on Tuesday, the average contract price of 1Gb DDR3 was $0.97 in the second half of December, down 11 percent compared to the first half of the month and one third of the highest price of $2.72 in May.
The drop below $1 is causing jitters even at Samsung Electronics and Hynix, the world's top two memory chip makers. Other memory chip manufacturers including Japan's Elpida and Micron Technology of the U.S. are expected to suffer losses in the fourth quarter.
Hynix president Kwon Oh-chul said the price slump is unlikely to cause a deficit due to the firm's cost competitiveness.