"DRAM Prices Expected to Rise 3-8% in Q2"

In Q4 Last Year, Decline Compared to Q1 Increase

DRAM prices in the second quarter are expected to rise by 3-8% compared to the previous quarter. Although there were double-digit increases for two consecutive quarters since the fourth quarter of last year, growth is expected to slow down in the second quarter.

Samsung Electronics 12-nanometer class Double Data Rate (DDR) 5 DRAM /
[Photo by Samsung Electronics]

On the 26th, market research firm TrendForce forecasted this, stating, "DRAM suppliers have tried to reduce inventory, but inventory has not yet reached a normal range." They also explained the background of the forecast, saying, "Overall demand this year is more lukewarm than expected," and "significant price increases by suppliers will weaken the momentum for inventory replenishment."

Previously, TrendForce expected the average selling price (ASP) of DRAM in the fourth quarter of last year to rise by 13-18% compared to the previous quarter. They also had a positive outlook for the first quarter, suggesting that DRAM price increases could reach 20%. This was based on the full-scale effect of production cuts in the DRAM industry and the depletion of excess inventory, which could drive such an upward trend.

However, since market uncertainties have not yet been fully resolved, a pause is expected in the second quarter. TrendForce explained that DRAM prices used in PC, server, mobile, and graphics sectors are all expected to rise by about 3-8%.

In the server DRAM sector, the price increase for DDR4 DRAM may be relatively larger than for the latest Double Data Rate (DDR) 5 products. TrendForce predicted, "DDR4 prices will rise more than DDR5 prices, narrowing the price gap between the two."