PC DRAM Prices Show Stable Trend, Expected to Rise Sharply Next Month... Server DRAM Prices Up 5%

[Asia Economy Reporter Jeong Hyunjin] Fixed transaction prices for PC DRAM and NAND flash remained stable in March. Since the spot prices, which precede fixed transaction prices, for PC DRAM showed an upward trend in the first quarter, a significant increase is expected in April. Fixed transaction prices for server DRAM, which cloud companies purchase, rose by up to 5% in March compared to the previous month.

According to Taiwanese market research firm TrendForce on the 31st, the fixed transaction price for PC DRAM DDR4 8Gb averaged $3 this month, unchanged from the previous month. The fixed transaction price for DDR4 8Gb was $2.85 at the end of last year, rose 5.26% in January to reach $3, and then remained stable in February and March. This reflects the characteristic that DRAM contracts are often made on a quarterly basis.

TrendForce stated, "The quarterly transaction price was set in January, and there was little change in PC DRAM transaction prices in February and March," adding, "Prices are expected to see a big hike in April when the second quarter price negotiations begin." They also forecast that fixed transaction prices for PC DRAM in the second quarter will rise about 20% compared to the first quarter.

Source = TrendForce

The spot price for PC DRAM already far exceeds the fixed price. For DDR4 8Gb, the spot price rose to $4.5 before recently settling around the $4.2 range. Since spot prices move in real time and precede fixed transaction prices, the market predicts that fixed prices will also rise if spot prices increase. TrendForce noted, "For the main DDR4 8Gb, the gap between spot and fixed transaction prices widened to 69.3% in March from about 60% in February," forecasting a continued upward price trend.

Fixed transaction prices for server semiconductors rose by 2?5% month-on-month in March, depending on the product. The mainstream 32GB server DRAM increased 3.48% last month and rose another 5.04% this month, reaching an average of $125. The 16GB server DRAM price averaged $70, up 2.94% this month alone.

TrendForce analyzed, "The DRAM market has entered an upward phase. Customers are under pressure to build inventory, especially corporate server and data center clients who are actively securing stock." They expect that supply will not catch up with demand, causing fixed transaction prices for server DRAM in the second quarter to be about 20% higher than in the first quarter, with strong demand continuing through the end of the third quarter.

The other segment of memory semiconductors, NAND flash, remained stable. The fixed transaction price for general-purpose NAND flash products (128Gb 16Gx8 MLC) for memory cards and USB devices has held steady at $4.2 for five consecutive months from November last year through this month.

TrendForce analyzed, "The global spread of the COVID-19 pandemic has delayed the recovery in demand for electronic devices equipped with NAND flash more than expected." They added, "NAND flash prices are expected to rise in April, and demand for network products such as gigabit passive optical networks (GPON) will increase, causing prices for SLC (Single Level Cell) NAND flash to rise noticeably."

Memory semiconductors are a market led globally by domestic companies such as Samsung Electronics and SK Hynix. Therefore, an increase in memory semiconductor prices positively affects the performance of these companies.

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