Memory Inflation

ZDNet reports on inflation in the price of memory chips due to a demand/supply imbalance.

The price of a 256-megabit DDR DRAM chip, the industry standard, stands at $6.53, according to microchip broker That compares with $3.70 at the start of this year. At the end of last year, analysts had been expecting prices to fall to as low as $3.30.

I’m sceptical about the root causes here — maybe it comes from having lived through the “electricity crisis” in California a couple of years ago when it appears that electrical generating companies manipulated the market to drive prices/kilowatt hour out of sight! According to the article, Samsung may be uniquely positioned in this regard.