① In August this year, the global average prices for DRAM and NAND flash memory hit new record highs, but the month-on-month increase narrowed compared to July: DRAM rose by 4.2% month-on-month, while NAND increased by 1.4%. ② The expected month-on-month increase in contract prices for PC DRAM in the third quarter has been raised to 18%-23%, marking a deceleration from the second quarter.
Driven by expanding demand for artificial intelligence infrastructure, global average prices for DRAM and NAND flash memory hit new record highs in August. However, the month-on-month price increases narrowed compared to July: DRAM prices rose by 4.2%, while NAND flash prices increased by 1.4%.
Data released this Tuesday (September 1) by market research firm TrendForce (DRAMeXchange) shows that the average contract price for standard PC DRAM (DDR4 8Gb 1Gx8) in August was $25, up 4.2% from $24 the previous month. Compared to the $2.90 recorded when the agency began its statistics in June 2016, the price has increased more than sevenfold.
Looking back at the price trend of DDR4 over the past year or so: from April last year to February this year, the average price of DDR4 saw double-digit increases for 11 consecutive months. However, DDR4 prices remained flat month-on-month in March; thereafter, aside from a 5% increase in May, April, June, and July again recorded double-digit growth, until the pace of price hikes slowed once more in August.
Following the release of August price data, TrendForce raised its forecast for the month-on-month increase in PC DRAM contract prices for the third quarter from the previous 15-20% to 18-23%. It noted that "the vast majority of suppliers and PC original equipment manufacturers (OEMs) completed third-quarter contract price negotiations in August," and stated that "the price increase in the third quarter has moderated compared to the surge in the second quarter (45-50%)."
In August, the average contract price for standard NAND products used in memory cards and USB flash drives (128Gb 16Gx8 MLC) was $30.50, a slight increase of 1.4% from $30.10 the previous month, marking the 20th consecutive month of price increases.
The month-on-month increase in the average selling price of Single-Level Cell (SLC) memory narrowed from 34-51% in July to 16-28% in August; the month-on-month increase for Multi-Level Cell (MLC) memory was only 1.4-1.5%.
TrendForce assessed: "SLC prices are likely to continue rising after the third quarter, but the magnitude of the increase may continue to narrow," and predicted: "As cost pressures increasingly squeeze end-user profits, buyers' subsequent procurement willingness will weaken, further cooling the upward trend for MLC."
Editor/lambor