EL SEGUNDO, CA — DRAM inventories have spiked, and a predicted 16% rise in shipments during the current period will further aggravate pricing pressure for the foreseeable future, a leading research firm said.

Two Gb DDR3 memory is projected to drop to $1.60 in the  quarter, down 24% sequentially, says IHS iSuppli. Fourth quarter prices could shave another 22%, bringing the total price drop to about $3.45 in just five quarters.

"Contrary to typical seasonal patterns in which prices are very soft during the second quarter, that period this year saw relatively flat, unchanged DRAM pricing compared to the first quarter,” said Mike Howard, principal analyst, DRAM and memory, at IHS. “However, companies did not capitalize on the healthy pricing levels to increase shipments in the second quarter — which, in retrospect, may have been the best time to do so.”

DRAM manufacturers are blaming bloated inventory and challenges in transitioning to new process technologies.

IHS says shipments could rise 15.9% in the third quarter, further hampering DRAM prices.

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