This year’s’super cycle’ is coming… memory semiconductors that stopped falling prices in December last year
Input: 2021.01.01 15:55
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Trend Force survey, server DRAM fixed transaction stopped falling last month
It was found that the price of fixed DRAM transactions for servers, the flagship product of domestic semiconductor companies, stopped falling after six months. While PC DRAM prices have remained flat for two consecutive months, there are observations that the’super cycle’ of DRAM semiconductors (long-term boom) will become a reality from next year.
Trend Force, a global market research firm, announced on the 31st of last month that the fixed transaction price of 16GB server DRAM (DDR4 16GB R-DIMM) and 32GB server DRAM were maintained at the same price as last month at $65 and $110, respectively. .
Server DRAM purchased by cloud companies showed a solid price trend as they enjoyed the non-face-to-face specialty caused by Corona 19 in the first half of last year, but it fell for 5 consecutive months from July last year to last month due to increased inventory. However, in December, the downtrend stopped and remained flat.
This means that the speed of DRAM price recovery has accelerated compared to the initial estimate that the decline will stop in the first quarter of this year.
Trend Force explained, “The inventory of customers has been relatively low and the power outages in Micron’s Taiwan plant have created a favorable environment for suppliers.”
In addition, as DRAM manufacturers are expected to reduce server DRAM production and increase the proportion of PC and mobile DRAM, Trend Force predicted that the contract price for server DRAM in the first quarter of this year will increase by about 5%.
The average fixed transaction price for PC DRAM (DDR4 8Gb) was also calculated to be $2.85 without change from last November. PC DRAM fixed transaction prices rose sharply to 11.9% in April of last year, then fell -5.4% and -9.0% in July and October, respectively, and remained flat in November and December.
TrendForce said, “The micron power outage has encouraged customers to replenish DRAM stocks, and the spot price has risen partly, but suppliers expecting higher prices have passively responded to orders, resulting in a fixed transaction price. Maintained a similar level.”
Photo. Samsung (Source: Yonhap News)
Micron power outage accelerates recovery… “5% increase in the first quarter of this year”
Trend Force predicted that the fixed price of DRAM for PC in the first quarter of this year will also increase by 5% compared to the previous quarter. Experts predict that from this year at least two years or more, prices will surge due to increased demand compared to DRAM supply.
NAND flash also maintained the same level as last November in all products of SLC (Single Level Cell) and MLC (Multi Level Cell).
SLC’s fixed transaction price is expected to increase in January this year due to a decrease in supply and an increase in demand for Wi-Fi routers, and MLC products are expected to be at the same level as this month.
Trend Force predicted, “With the re-proliferation of Corona 19, Wi-Fi demand is high in North America and Europe, so NAND flash SLC is expected to rise soon.”