Due to Oversupply... Server DRAM Prices Expected to Drop Up to 18%

[Asia Economy Reporter Changhwan Lee] It is forecasted that the price of server DRAM, one of the major DRAM products, will significantly decline in the fourth quarter due to oversupply.

According to market research firm TrendForce on the 19th, the price of server DRAM in the fourth quarter is expected to drop by up to 18% compared to the previous quarter. This figure has been revised upward from the previous forecast of a maximum 15% decline.

TrendForce explained that the reason for the downward revision is the excessively high inventory levels of server ODM (Original Design Manufacturer) companies in the third quarter.

It will take at least one to two additional quarters for ODM companies to normalize semiconductor inventory. Accordingly, it is expected that client companies will find it difficult to increase server DRAM orders until the end of this year or early next year.

Furthermore, due to U.S. sanctions making it difficult for Huawei to receive semiconductor supplies since the 15th, the possibility of further DRAM price declines in the fourth quarter has also increased, TrendForce added.

TrendForce analyzed, "Although Huawei has aggressively pre-procured server DRAM over the past two weeks, server DRAM is still experiencing oversupply."