Lack of nitrogen could push DRAM prices higher

April 09, 2018 // By Peter Clarke
A nitrogen supply issue at wafer fab in Taiwan belonging to Micron Technology Inc. (Boise, Idaho) could prolong the tight supply in the DRAM market into 2Q18 and even push prices higher, according to market analysis company TrendForce.

Trendforce said it expects prices of PC DRAMs to increase by 3 percent in 2Q18 compared with 1Q18. During the first quarter prices were up about 5 percent compared with 4Q17. The average and the highest contract price of mainstream DDR4 4Gbyte modules are still at US$33 and US$34 respectively in March.

The gas problem was at the former Rexchip fab now owned by Micron and was due to a gas generation system located outside the facility supplied by Air Products and Chemicals. The equipment was returned to the US for repair in March and is back in Taiwan. Micron Memory Taiwan is expected to return to full operation in early April.

The market for graphics DRAM is facing an undersupply situation and is also expected to be hit by the temporary loss of production at Micron Memory Taiwan, Trendforce, said.

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