DRAM revenue reaches best level for five years

Revenue from dynamic random access memory (DRAM) is growing better in the second and third quarter of this year than it has in the past five years, according to iSuppli.

The analyst firm said that global DRAM revenue rose by 34 per cent in the second quarter of 2009 and a further 35 per cent in the third quarter.

The industry had seen a spell of losses lasting three quarters in 2008 to 2009, but this spike in the market has helped it recover.

Average selling prices for DRAM also rose by 21 per cent this quarter following its first rise in price since 2006 in the second quarter of this year.

Mike Howard, a senior analyst of DRAM for iSuppli, said in a statement: "Third-quarter results from major suppliers show that the DRAM industry recovery is no mirage."

"The continued increase in prices comes as another indicator that the DRAM market is emerging from what has been a long and painful slump."

The company predicted that supply levels should be consistent into the fourth quarter and should get even better in 2010 as the economic landscape improves.