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DRAM prices went down again, analysts say

After a slight recovery in the second quarter, the global DRAM market is showing signs of weakness again – due to overstocking, prices are expected to fall throughout the third quarter, according to analyst firm iSuppli.

Changes will affect contract prices for OEM. Experts predict their decline in August and September. The main question remains: how much will prices fall??

“By the end of the third quarter, the average DRAM contract price will be more than 10% lower than the current price,” says an iSuppli spokesperson.

The reason for the decline is the rapid increase in the volume of supplies. Encouraged by the improved performance, manufacturers increased shipments by 15% in the second quarter, significantly more than the expected 10%.

The situation will continue in the future, due to the fact that the two largest manufacturers, Samsung Electronics and Hynix Semiconductor, are moving to “less than 60 nm” standards, which will make it possible to increase production volumes. Market stabilization should not be expected until the second half of 2021, analysts conclude.

One of the first to feel the pressure of falling DRAM contract prices was Nanya Technology. According to the source, this was announced by a company representative.

Sources: DigiTimes, iSuppli

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