Worsening Semiconductor Supply Shortage... Price Increases Inevitable for DRAM, NAND, and More

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the global semiconductor shortage meets various adverse factors and prolongs, the prices of major products such as DRAM and NAND flash are expected to continue rising steadily for the time being.

According to the related industry on the 22nd, the DRAM Price Index (DXI), which indicates the price outlook for DRAM, recorded 37,600.92 on the 19th. The DXI index, which has risen nearly 50% since the beginning of this year, surpassed the 30,000 mark last month and even exceeded the pre-2018 peak. This fully reflects the worsening semiconductor supply and demand issues caused by increased demand for IT devices such as PCs and mobiles stemming from COVID-19.

Looking at individual semiconductor products, the average spot price of PC DRAM (DDR4 8Gb) exceeded $4 on the 22nd of last month and recently rose to $4.5. Due to data center expansions, server DRAM prices are also expected to rise sharply. In this situation, analyses suggest that the supply shortage could worsen and price increases could accelerate due to the combination of the Texas cold wave in the U.S., drought in Taiwan, and a fire accident.

NAND flash prices are also showing an upward trend. The average spot price of general-purpose NAND flash products (128Gb MLC), mainly used in solid-state drives (SSD) and USBs, was $5.944 as of the 19th, up more than 6% compared to the beginning of the year. NAND flash prices, which had been declining since 2019 due to oversupply, have started to rise earlier than expected due to increased demand.

Taiwan market research firm TrendForce predicted, "For PC DRAM, prices are expected to rise about 13-18% in the second quarter compared to the first quarter due to the strong laptop market," and "NAND flash prices are also expected to increase by 3-8% during the second quarter."

This content was produced with the assistance of AI translation services.