Memory prices set to rise as makers report disruption

January 09, 2020 // By Peter Clarke
Memory prices set to rise as makers report disruption
DRAM and NAND flash memory contract prices are set to rise in 1Q20 according to TrendForce Corp., a market research firm that focuses on memory component pricing.

TrendForce said that although a power outage at Samsung's Hwaseong fab on December 31, 2019, was unlikely to seriously impact the supply side buyers are now showing willingness to build up inventories.

DRAM price rises were more likely in PC and speciality DRAMS than mobile DRAMS. Although there is strong interest in 5G mobile phones chipset supply remains limited the firm said.

On the NAND flash front, despite a weakness in end markets NAND demand is expected to remain strong while supply remains tight. In 2019 NAND bit demand was driven by the PC market while in 2020 that is expected to move to server market, TrendForce said.

Meanwhile Digitimes has reported that a fire broke out at Kioxia's Yokkaichi plant in Japan on January 7 and that this could send NAND flash prices upwards.

Such events rarely cause major changes to the supply side but can be used by vendors as a reference or a reason to limit supply and justify price rises and to try and make them stick with customers.

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News articles:

Micron overtakes DRAM competition, avoids EUV

Chinese startup starts DRAM production

China's YMTC takes 3D-NAND to 64 layers

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