3Q DRAM prices are expected to fall by 10%… Memory industry emergency

It was observed that DRAM prices in the third quarter of this year will fall by 10% from the previous quarter. The price is expected to be downward to the server DRAM, which has a relatively stable demand, and the reduction in the second half of the memory industry, such as Samsung Electronics, SK Hynix, and Micron, is inevitable.

According to market research firm Trend Force on the 5th, DRAM prices are expected to fall by 10% from the second quarter. This is a forecast that has fallen further from the 3-8% decline by the company. Trend Force added, If price competition is triggered by the competition for sales of memory companies, the price drop can exceed 10%.

If you look at DRAM prices for each sector ▲ DRAM for PCs ▲ DRAM for PCs ▲ DRAM for server 5 ~ 10% ▲ Mobile DRAM 8 ~ 13% drop ▲ DRAM for graphics 3 ~ 8% RAM is expected to fall 8 ~ 13%.

The reason why DRAM prices have fallen is due to the reduction in demand for major IT products such as mobile, TV, and PC due to inflation and prolonged Ukrainian war. As DRAM supply and demand intensifies, prices are inevitably cut.

Smartphone makers are responding to the accumulation of inventory while lowering their production targets. On the other hand, DRAM manufacturers are increasing production by adopting advanced processes for mobile DRAM production. Trend Force said, The demand for mobile DRAM and the polarization of supply are intensifying, he said. DRAM manufacturers are willing to discount mobile DRAM prices.

Graphic DRAM also worsened demand due to a decrease in consumer products and shrinking the cryptocurrency market.

The trend force said, The demand for DRAM for graphic has decreased, but it is difficult for manufacturers to quickly adjust the production. It was as easy as doing it.

The DRAM for server is also inventory. As inventory increases, DRAM prices are inevitable. Trend Force explained, The memory manufacturer first has been discussing the quarterly price reduction by more than 5%, so the decline in server DRAM has increased to 10%.

Meanwhile, NAND flash prices are also on a decline. According to market research firm DRAM Exchange, the fixed transaction price in NAND flash (MLC 128GB) in June fell to $ 4.67, down 3.01% from the previous month. The price of NAND flash was maintained for 10 consecutive months after the 5.48% rose in July last year, but it turned down in 11 months.