Kingston Buying Up Large Volumes of Elpida, Toshiba DRAM Chips

The DDR3 memory industry is suffering with indigestion. Quite literally. Upstream component manufacturers, as well as vendors have jointly overproduced, and hence we're seeing unreal memory prices. DRAM chip vendors Elpida and Toshiba are two of those companies suffering with inventory digestion problem, and they could be the worst hit, given that they're both Japanese, and are part of an environment with lower room for cost-cutting (since labor costs, as well as product quality factor in higher). Taiwan's Kingston Technology has a pill.

According to a DigiTimes report, Kingston is buying large volumes of DRAM chips from Elpida and Toshiba, in an effort to help the two digest inventories by the end of financial year 2011. This has been a disaster year for memory chip manufacturers.


They have overproduced, and coupled with lower PC sales, it has rendered many manufacturers cash-strapped and looking for funding to survive. In the retail and channel markets, we are getting to see some unreal prices, with 8 GB DDR3 modules going for as low as US $49.99, and 2x 4 GB dual-channel DDR3 memory kits well within reach of the masses.
The move to buy up large stocks of chips from Elpida and Toshiba has a few implications to PC enthusiasts, because chips made by the two go into making high-end DDR3 modules.

It could give Kingston a chance to come up with high-performing DDR3 modules at attractive price points, and help raise the brand up the ranks of others that PC enthusiasts look out for. Korea's Hynix Semiconductor is also among Kingston's DRAM chip suppliers, and it is reported that Kingston could also buy stocks of DRAM chips from it. Simply put, this is the best time to buy memory. Planning to gift your special someone something fluffy or shiny this Christmas? Try a memory upgrade instead!