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Insider: memory chip prices will rise by more than 10% next quarter

SemiMediaEdit
March 13, 2020

According to insiders of the memory chip industry, memory chip manufacturers are negotiating with the memory module factory for the second quarter contract price, and the contract price of DRAM and NAND Flash may increase by more than 10% in the next quarter.

Reports have pointed out that the contract price increase of memory chips is driven by the continuously growing demand, including the growth of demand for data centers, enterprise solid-state drives and other applications.

The source also said that inventories of DRAM makers such as Samsung, SK Hynix and Micron have been reduced to 4 to 6 weeks, coupled with the large increase in the number of DRAM bits on new 5G mobile phones, it is estimated that the DRAM market will be in short supply in the second half of the year, which will drive up prices. As for NAND Flash, the supply in the second half of the year will be even tighter than DRAM.

In addition, according to a recent report from Korean media, Micron’s factories and offices in China were severely affected by the COVID-19 epidemic, and production was interrupted. In this regard, Micron issued a statement saying that so far, the operations of all factories in Asia have not been affected, and the production line is running as usual.

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