March 27, 2024 /SemiMedia/ -- According to the latest report from TrendForce, due to the poor overall demand outlook for DRAM this year and the substantial price increases in previous months, TrendForce expects the DRAM contract price increase in the second quarter to drop to 3% to 8% on a quarter-on-quarter basis.
The report shows that PC DRAM buyers will increase DDR5 purchases in the second quarter. As this type of memory chips are converted to advanced processes, cost optimization will significantly improve manufacturers' profits. PC DRAM contract prices are expected to increase by 3% to 8% month-on-month in the second quarter, but the increase in DDR5 will moderate slightly.
In terms of server DRAM, buyers continue to increase DDR5 inventory, but the actual penetration rate is still lower than expected in the first quarter of this year, which means that DDR5 demand has not yet fully recovered. TrendForce predicts that DDR4 contract prices will rise higher than DDR5 in the second quarter, with the price difference gradually narrowing.
In terms of mobile device DRAM, manufacturers’ mobile DRAM contract price targets for the second quarter are to increase by 10% to 15% or more quarter-on-quarter. However, TrendForce believes that due to the impact of flat demand, mobile DRAM contract prices are expected to increase by 3% to 8% in the second quarter.
