11 Nov 2021 -
 General

DRAM prices set to drop in 4Q21, says IC Insights

DRAM demand is expected to soften and prices to decline in 4Q21 compared to the first three quarters of this year since many buyers have a sufficient amount of stock on hand to meet their needs through the end of the year, according to the latest reports from IC Insights.

“Specifically, PC and server manufacturers purchased large quantities of DRAM in the first half of 2021 to help alleviate potential manufacturing and shipping delays later in the year. They are expected to curtail their high level of DRAM purchases in 4Q21 in order to burn through existing inventory. PC and server DRAM prices are expected to slip 0-5% in 4Q21,” they said in the report.

DRAM prices soared 41% through the first eight months of 2021, rising from $3.37 in January to $4.77 in August. September’s DRAM ASP slipped 3% to $4.62, which still was a 37% increase from the beginning of the year. Such a strong price increase and market rebound were expected in 2020 following a very difficult year in 2019 when the DRAM average selling price (ASP) fell 44%. But major challenges—chief among them, the global Covid-19 pandemic— clouded and disrupted the market for DRAM in 2020.

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