DRAM and NAND December Fixed Transaction Prices Steady... Focus on Impact of Xi'an Lockdown in China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The fixed transaction prices for the representative memory semiconductors DRAM and NAND flash in December showed no change compared to the previous month. Recently, due to the COVID-19 outbreak and the lockdown in Xi'an, China, disruptions have occurred in the factory operations of major memory semiconductor companies such as Samsung Electronics and the US-based Micron, drawing attention to the potential impact on the market.

According to market research firm TrendForce on the 31st, the average fixed transaction price of DDR4 8Gb 1Gx8 2133MHz, a PC DRAM product, remained unchanged at $3.71 from the previous month. The average fixed transaction price of 128Gb 16Gx8 MLC NAND flash, used for memory cards and USBs, also recorded the same $4.81 as the previous month.

Fixed transaction prices are contract prices between semiconductor manufacturers and their customers and are used as an indicator to gauge the supply and demand situation in the semiconductor market. Generally, DRAM fixed transaction prices show significant changes in the first month of the quarter when manufacturers and customers sign contracts.

TrendForce stated that although spot transactions for DRAM have not increased quantitatively, the recent downward price trend has stopped, and the market is anticipating the possibility of price increases. Regarding NAND, they analyzed that demand uncertainty has increased due to the spread of the Omicron variant, and the situation needs to be monitored going forward.

Some suggest that the lockdown order in China may lead to production adjustments at Samsung Electronics' Xi'an NAND flash factory, potentially causing NAND prices to rise. Samsung Electronics is known to produce about 10% of the world's NAND production volume at its Xi'an plant.

Micron, ranked third in the DRAM market share, recently stated that DRAM production is also expected to face disruptions. Micron said, "Due to the Xi'an lockdown, delays in DRAM supply are anticipated," adding, "Currently, the workforce available to operate the factory is very limited." They also explained, "We are contacting and seeking assistance from subcontractors and the global supply chain partners," and "While most customers will receive products, there may be short-term delays."

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