10 Jan 2024 -
 General

DRAM price hikes: Temporary blip or new normal?

Micron

There’s rumours in the market about an upward trend in DRAM prices. Analysts at TrendForce estimate a jump of 13-18% in contract prices, a significant shift from the recent downward trend.

This potential price hike stems from a confluence of factors. On the one hand, demand for DRAM is expected to rise, driven by factors like the ongoing boom in the PC market and the increasing adoption of AI and 5G technologies. As TrendForce notes, “rising demand for servers and high-performance computing applications is also contributing to the expected price increase.”

On the other hand, supply remains constrained. Major DRAM manufacturers like Samsung and Micron are reportedly planning production cuts or delays due to various factors like the ongoing shift towards more advanced production processes. This limited supply, coupled with increasing demand, creates a classic recipe for price rises.

However, the extent and duration of this price hike remain uncertain. Nanya Technology, another major DRAM player, expresses “optimism about the DRAM market” in the second half of 2024, suggesting a potential return to normalcy later in the year. Analysts at TrendForce echo this sentiment, noting that “the price increase is expected to be temporary, with prices likely to stabilize or even decline in the second half of the year.”

This potential price volatility presents both challenges and opportunities for the electronics industry. Consumers might face higher prices for memory-intensive devices in the short term. However, for manufacturers and distributors, this could be an opportunity to adjust their pricing strategies and inventory levels to navigate the changing market dynamics.

Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here

For more help with looking at supply chain options, contact Astute Electronics

Related News

10 Jul 2024 - General

Counterfeit GPUs on the Rise: A Growing Concern for the Electronics Industry

Read more

09 Jul 2024 - General

DRAM Prices Skyrocket Amidst AI Boom and Production Shifts: A Deep Dive into the Memory Market

Read more

08 Jul 2024 - General

US Government Invests in Semiconductor Workforce to Combat Looming Talent Crisis, But Challenges Remain

Read more

07 Jul 2024 - General

Semiconductor Manufacturing Equipment Sales Expected to Explode

Read more

05 Jul 2024 - General

US attracting ‘insane’ money into building chip manufacturing

Read more

04 Jul 2024 - General

Vietnam: caught in the crossfire of US-China tech rivalry

Read more