Media Contact

Ms. Lindsay Hou

Tel: +886-2-8978-6488 ext.667

RSS Subscription
  NAND Flash  
  Consumer Electronics  
  Green Energy  
  Internet of Things  
  Automotive Electronics  
  Innovative Technological Applications  

Press Release

Overall ASP of DRAM Products to Go Up by 5% Sequentially in Third Quarter as Supply Remains Tight, TrendForce Reports

Monday , 06 / 26 / 2017 [ Analysts: Avril Wu ]

DRAMeXchange, a division of TrendForce, reports that DRAM suppliers are now negotiating with their clients over the third-quarter contracts during this latter half of June. As there is no easing of undersupply in the DRAM market, prices continue to climb. DRAMeXchange estimates that the overall ASP of DRAM products will rise by about 5% this third quarter compared with the second quarter. Suppliers can therefore expect further increases in their profits.

“Although the end demand, particularly from the smartphone market, has not been strong this year, the general pace of manufacturing technology migration has been slow and is contributing to the tightening of supply,” said Avril Wu, research director of DRAMeXchange. “This situation is anticipated to last to 2018 since suppliers will not take on significant additional production capacity in the short term. Meanwhile, ASPs of various DRAM products will remain high.”

Diversification of end products adds complexity to DRAM production

Compared with previous cycles, the major difference for this cycle is the impact of new types of application demand has on the DRAM production. In the past, DRAM products were fewer in types and had similar specifications because they were mainly for PCs and smartphones, which were the two dominant applications. This also meant that fluctuations in end market demand and changes in the macroeconomic environment could cause large swings in DRAM prices. Now, other applications for DRAM have emerged, such as graphic processing, cloud computing, automotive electronics and hardware acceleration for machine learning. Product solutions in these markets are generally at the early stages of their lifecycles, so there is a high level of customization for related components, including memory. For DRAM suppliers, offering customized products introduces complexity to the allocation of their existing production capacity. Furthermore, DRAM products for the emerging applications do not experience large price swings because of their lifecycles and smaller supply volumes. On the whole, application-specific DRAM products have helped stabilize the general price trend.

In the third quarter, shipments of smartphones and PCs are not expected to be especially robust. However, demand related to the building of data centers and the year-end busy season for consumer electronic vendors will propel the DRAM market and drive up prices. The spot market, which is the usual leading market indicator, has shown price rally since last week. In the contract market, prices of server DRAM modules have spiked up. DRAMeXchange expects server DRAM modules to experience the most noticeable sequential price increase in the third quarter by around 3% to 5% on average. On account of these trends, the overall ASP of DRAM products are projected to go up by at least 5% in the third quarter compared with the second quarter.

To keep updated with our press releases, please follow our social media pages. facebookGoogle+TwitterLinkin


TrendForce Press Center Copyright Notice
TrendForce grants you a limited license to use and/or republish any of the press releases on TrendForce Press Center for any legitimate media purpose (including copying and redistributing the content of press releases in any format and via any outlets), provided that you follow these license terms:

1. Reference TrendForce as the source on your works, or include a hyperlink to the original release on the TrendForce site.
2. Do not modify any press release wording, or maliciously alter its related information. Users are subject to any civil or criminal liabilities if the information displayed in the copy or redistribution of press releases is inconsistent with the original materials on TrendForce Press Center.
3. Do not modify or add hyperlinks, including but not limited to adlinks, within the press release. The authorization of press releases on TrendForce Press Center does not grant users the right to suggest, approve or endorse their value-added derivatives on behalf of this body.

If your citations of press releases contain mistakes and/or have information missing, TrendForce may, in its sole discretion, direct you to remove the content distributed via TrendForce from your site at any time and for any reason, and you agree to comply with such request.