"NAND Flash Prices to Rise 5-10% in Q3... DRAM Remains Steady"

[Asia Economy Reporter Suyeon Woo] It is forecasted that the price of NAND flash, a type of memory semiconductor, will continue to rise in the third quarter. On the other hand, the price increase of another memory semiconductor, DRAM, is expected to slow down.

According to the industry on the 18th, market research firm TrendForce predicted that NAND flash prices will rise by 5-10% in the third quarter compared to the previous quarter. This is similar to the average increase rate in the second quarter.

TrendForce expects SSD (solid-state drive) prices to continue rising in the third quarter due to strong laptop demand driven by COVID-19 pent-up demand and tight inventory management by NAND flash suppliers. Accordingly, client SSD prices are forecasted to increase by 3-8% in the third quarter.

In particular, enterprise SSDs used in servers are expected to show continuous price increases in the third quarter following the previous quarter. TrendForce interpreted that demand for enterprise SSDs is also increasing as bids related to digital infrastructure from government agencies and general companies rise. Major NAND flash suppliers are maintaining about 4-5 weeks of inventory, and prices in the third quarter are expected to rise up to 15%.

NAND Flash Price Outlook for Q3 2021 / Source=TrendForce

Meanwhile, TrendForce predicted that the price increase of DRAM, another memory semiconductor, will slow down compared to the second quarter. This is because major demand sectors have already accumulated high inventory levels in the first half of the year. TrendForce forecasted that DRAM prices will rise by an average of 3-8% in the third quarter. This is a significant decrease compared to the 18-23% increase in the second quarter.

PC DRAM prices in the third quarter are expected to rise by 3-8% compared to the previous quarter, and server DRAM prices are expected to increase by only 5-10%. In the second quarter, PC DRAM prices rose by 23-28%, and server DRAM prices increased by about 20-25%. TrendForce noted that laptop manufacturers already hold 8-10 weeks of PC DRAM inventory, and for server DRAM, inventory levels in China and North American demand sectors are already over 8 weeks, making negotiations between buyers and suppliers more difficult.

The mobile DRAM market faced setbacks due to the resurgence of COVID-19, but price increases are expected to remain steady. TrendForce stated, "Mobile DRAM inventory is increasing due to worsening COVID-19 conditions in Southeast Asia, and smartphone manufacturers have started to lower production targets. However, due to strong demand and supply shortages, the mobile DRAM shortage will continue."

They added, "Samsung Electronics is expected to raise prices in the third quarter to match the price gap with competitors, which will lead to a broad price increase across the entire mobile DRAM market." TrendForce's forecast for mobile DRAM price increases in the third quarter is 5-15%, compared to an 8-13% increase in the second quarter.

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