The recent earthquake in Taiwan caused a brief ripple of uncertainty in the global DRAM market, but its impact has proven remarkably limited. Major producers have swiftly returned to full production, with market analysts at TrendForce estimating less than a 1% reduction in total DRAM output for Q2. This underscores the industry’s robust disaster preparedness.
While spot market prices saw temporary fluctuations, the more significant impact is on contract prices, which remain uncertain. Micron and Samsung halted mobile DRAM quotations entirely after the earthquake, while SK Hynix resumed quotations with proposed price adjustments. TrendForce anticipates a modest 3-8% increase in Q2 mobile DRAM contract prices due to typical seasonal demand.
Server DRAM prices are less predictable, as the earthquake primarily affected Micron’s advanced processes. The company’s final sales decisions will be crucial in determining pricing trends. The spot market, already facing weak demand for DDR4 and DDR5, saw only brief price gains that are likely to fade as conditions normalise.
Overall, the Taiwan earthquake serves as a notable test of the DRAM industry’s resilience. While temporary disruptions have occurred, the market’s fundamentals remain largely unchanged, pointing towards a rapid return to stability and predictable pricing trends.
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