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DRAM price declines in the second quarter may be nearly 25%

SemiMediaEdit
May 29, 2019

According to industry analysts, the price decline of DRAM in the first quarter of this year has expanded from the original estimate of 25% to 30%, which is the biggest decline in single season since 2011. Prices are expected to continue to fall in the second quarter, and the overall decline will approach 25%.

Due to the continued sluggish memory industry, coupled with the traditional off-season effect, DRAM prices and production both fell in the first quarter of this year. According to the survey, the output value in the first quarter was only 16.632 billion US dollars, a quarterly decrease of 28.6%.

Regarding the market outlook, due to the sluggish market transactions, supplier inventory continued to rise, the average price of 8GB modules in April has dropped to 34 US dollars, May prices may fall further in May and June. The supply chain revealed that the decline in DRAM prices will not improve in the second quarter, and the decline may approach 25%.

Affected by the trade war, the slowdown of global economic growth and the stagnation of consumer electronics sales, the oversupply of memory chips this year has become more serious. Recently, Micron indicated that it will reduce production by 5%. In this regard, Nanya Technology had estimated that the decline in DRAM prices in the second quarter will gradually shrink, and prices are expected to recover in the third quarter.

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