Memories dram suffer the biggest fall in prices since 2011

The latest DRAM market analysis by the folks at DRAMeXchange reveals that most contracts are now monthly rather than quarterly, and that February has seen a significant price drop. The quarterly decline in the current price fell from the originally projected 25% to nearly 30%, resulting in the largest single season decline since 2011 in this sector.

DRAM memory prices drop up to 30% in this first quarter

DRAMeXchange notes that based on the most recent market observations, stock levels have continued to rise since overall contract prices fell in the fourth quarter of last year, and most DRAM providers maintain a six-week stock. (including wafer banks). Meanwhile, Intel's low-end CPU supply shortage is expected to last until the end of the third quarter of 2019, so the order for DRAM modules for computers has also dropped accordingly.

The market as a whole has gone into free fall, which means that large price cuts are not going to be effective in boosting sales. Excess stocks will continue to trigger a downward price correction this year if demand does not return strongly.

Interestingly, yesterday we were commenting on the recovery in demand for DRAM memories, which is beginning to pick up, however, that is not preventing the free fall in module prices.

SK Hynix recently announced that it will invest 120 trillion won (about US $ 107 billion) to build four new wafer factories as part of its strategy to improve its competitiveness. Micron, on the other hand, started construction of a CI testing and packaging plant in Taiwan. At the same time, its subsidiary Micron Memory Taiwan (“formerly Rexchip”) in Houli, Taichung, is considering building a new 12-inch DRAM wafer factory, which could be completed by the end of next year. Samsung is also going in the same direction, currently building a second factory in Pyeongtaek.

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