SOURCE: The Bedford Report

The Bedford Report

September 08, 2011 08:16 ET

Pricing Controversy Weighs on Micron and Rambus

The Bedford Report Provides Equity Research on Micron Technology & Rambus

NEW YORK, NY--(Marketwire - Sep 8, 2011) - For memory chip makers, the level to which they are able to predict fluctuations in demand can spell success or disaster. The industry also remains dogged by lawsuits relating to alleged price fixing. While many top companies have already paid hundreds of millions of dollars to settle past cases, there are still a number of lawsuits that are still pending. The Bedford Report examines the outlook for companies in the Semiconductor - Memory Chips industry and provides investment research on Micron Technology, Inc. (NASDAQ: MU) and Rambus, Inc. (NASDAQ: RMBS). Access to the full company reports can be found at:

www.bedfordreport.com/MU
www.bedfordreport.com/RMBS

According to IHS iSupply, the average selling price for Double Data Rate 3 (DDR) in the 2-gigabit (Gb) density -- the bellwether DRAM product -- is projected to drop to $1.60 in the third quarter, down 24 percent from $2.10 in the second quarter. DRAM manufacturers attribute the low growth in shipments in the second quarter to large inventory and challenges in transitioning to new process technologies.

The NAND market continues to improve, however. Contract prices for MLC NAND flash memories all stopped falling in late August, according to DRAMeXchange. Average prices for 16Gb and 32Gb MLC NAND chips saw sequential growth of 3-6% in the second half of August while those for high-density 64Gb ones remained flat.

The Bedford Report releases stock research on the Semiconductor - Memory Chips industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Further litigation in the industry concerning patent infringement has also been a hot issue of late with Rambus Inc. continuing its crusade against many key players within the memory chips industry. Rambus was dealt a blow last month when a US appeals court said it will not reconsider rulings that the chip designer was wrong to shred hundreds of boxes of documents relevant in two patent infringement lawsuits, according to court records.

Rambus says South Korea's Hynix and Idaho-based Micron colluded to fix prices of memory chips used in personal computers and prevent its technology from becoming widely used. It claims it lost billions of dollars in business.

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