December 29, 2023 /SemiMedia/ -- According to supply chain, memory chip manufacturers continue to increase prices even though end market demand has not increased significantly.

Memory chip prices have been rising since the second half of 2023. While DRAM prices have only increased by about 20%, NAND flash memory prices have soared by 60% to 70% in the past two months. However, end market demand does not appear to be increasing significantly.

Memory chip demand has increased recently, with mobile phones being the only driver. However, whether demand can support price increases in the first quarter of 2024 remains uncertain.

Industry insiders said that mobile phone sales are expected to have bottomed out and the global smartphone market will recover next year, which has led mobile phone manufacturers to start hoarding chips.

Global smartphone shipments in the third quarter of 2023 were approximately 275 million units, a year-on-year decrease of 0.6%. After nine consecutive quarters of decline, shipments are likely to increase year-over-year in the fourth quarter of this year.

Memory module companies expect demand for high-end servers for AI applications to grow exponentially, as will demand for DRAM and other storage devices.