TrendForce "4Q DRAM Price Decline Larger Than 3Q Due to Demand Stagnation and Inventory Increase"
[Asia Economy Reporter Kim Pyeonghwa] Due to rising inflation and decreased demand, DRAM prices are expected to fall by up to 18% in the fourth quarter. In particular, the price decline for server and mobile DRAM is expected to be more pronounced.
On the 23rd, Taiwanese market research firm TrendForce forecasted that DRAM prices will drop by 13-18% in the fourth quarter. Following a predicted 10-15% decline in the third quarter, the downward trend is expected to continue into the fourth quarter.
TrendForce stated that inflation increases and demand slowdown will continue to impact the market in the fourth quarter, as they did in the third quarter. DRAM suppliers are under inventory pressure, leading them to lower prices to sell DRAM, which results in a more significant price decline.
Looking at different types of DRAM, although the degree of price decline varies, overall, the price drop in the fourth quarter is larger than in the third quarter.
In particular, server DRAM is expected to show a steep decline of 13-18% due to a decrease in total server shipments. Mobile DRAM is also expected to see a 13-18% price decrease, making its price drop more pronounced compared to other DRAM types.
For PC DRAM, TrendForce explained that a 10-15% price decline will continue in the fourth quarter. Graphic DRAM and consumer DRAM are also expected to see price drops of 10-15%, respectively.
Regarding graphic DRAM, TrendForce commented, "There are only two suppliers of GDDR6 8Gb: Samsung Electronics and SK Hynix," adding, "Due to the massive inventory burden, the two companies have no choice but to lower each other's prices and compete for orders."
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