02 Mar 2021 -

Server DRAM price may increase up to 40% QoQ from last year

Server DRAM contract prices are likely to increase by more than 40% cumulatively from late 2020 to late 2021 as demand is set to remain strong through 3Q21, reports technology analysts, TrendForce.

Since 3Q20, memory suppliers’ production capacities allocated to server DRAM have dropped to about 30% of the total DRAM production capacity, according to TrendForce’s latest investigations. However, since the persistent demand for consumer electronics has shown no signs of slowing down in 1Q21, and that second quarters have traditionally marked the cyclical upturn in server shipment, server DRAM demand is thus expected to ramp up in 2Q21.

TrendForce analysts say, “On the whole, TrendForce expects server DRAM contract prices to increase by about 8% QoQ in 1Q21 and by 3-4% MoM on average within the quarter. Looking ahead, TrendForce indicates that server DRAM will remain in high demand through 3Q21, as geopolitical uncertainties and the shift of work life towards WFH continue to generate upward momentum for server shipment. Therefore, server DRAM contract prices are expected to rise by more than 40% cumulatively from late 2020 to late 2021.”

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