Ban on huawei would make dram prices drop 15%
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DRAMeXchange, the memory and storage arm of market intelligence firm TrendForce, today added a new entry to the list of industries expected to be adversely affected by the tension between the United States and China. The research firm announced that it expects Huawei to be blacklisted by the US government. contribute to a DRAM price drop of up to 15% in the third quarter.
Huawei's loss as a DRAM customer is expected to make things worse for manufacturers
"As waves of the US ban continue to spread, Huawei shipments of smartphone and server products are feared to face major hurdles over the next two to three quarters, which will impact demand. high season for DRAM products and at the time of falling prices, ” said DRAMeXchange.
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The DRAMs market has already been affected by falling demand, surplus stocks, and other problems. These problems have led to a steady drop in prices in 2018 and in the first half of 2019. Memory companies have already felt the impact of these price drops: Samsung even ceded the semiconductor throne to Intel in May because its Profits had fallen in recent quarters. Huawei's loss as a customer is expected to make matters worse.
The decision to blacklist Huawei, allegedly for national security reasons, also directly affected many American companies. Most decided to stop working with Huawei altogether, like Google and ARM. Much of the US semiconductor industry They have limited their participation in the company, despite knowing that their income would decrease as a result.
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Demand for dram fell in April, prices would start to drop
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A dramatic drop in prices of the dram is expected in 2019
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