December 5, 2023 /SemiMedia/ -- Simon Chen, chairman of ADATA, said in a recent interview that the memory chip market should enter a new long market starting next year, and memory chips will enter a period of short supply for one and a half to two years.
Simon Chen said that the top five NAND Flash manufacturers have reduced production by 40% to 60%, and the previously accumulated market inventory may be exhausted by the end of this year or the end of January next year. Now chip makers are raising their prices, by 30% in about two weeks.
In terms of DRAM, the price of DDR5 has risen faster than expected, with the price rising by more than 50% from the previous price to now. In addition, since the profit of DDR5 is higher than that of DDR4, manufacturers will gradually transfer production capacity to the production of DDR5, which will lead to an even greater shortage of DDR4 in the future. Therefore, Simon predicts that the price increase of DDR4 will also become larger in the first half of next year.
Simon pointed out that the reason for the insufficient production capacity of memory chips in the future is not only the previous production cuts by chip manufacturers, but also the fact that they have consumed large amounts of money due to losses and are unable to expand new production capacity in the short term.
Simon predicts that the consumer market will recover, and next year should be the first year when the bull market for memory chips begins.
