DRAM price increase will be initiated, with Samsung and Micron experiencing a 20% increase in Q1 2024
According to sources from storage module companies, storage chip suppliers such as Samsung Electronics and Micron Technology are considering increasing DRAM prices by 15% -20% in the first quarter of 2024.
Compared to the soaring prices of NAND flash memory, DRAM pricing remained relatively stable in the fourth quarter of 2023. However, sources say that storage chip manufacturers currently expect to focus on DRAMs such as DDR4 and DDR5 in the next round of price increases to accelerate the recovery of profits.
A storage module factory has received a notice from Samsung to increase DRAM prices by at least 15% in the first quarter of 2024. But Samsung did not mention the pricing of NAND flash memory, but it is expected that NAND prices will continue to rise. In December 2023, DRAM prices increased by 2% -3%, significantly increasing DRAM prices, but lower than the approximately 10% increase in 3D TLC NAND for that month.
As the demand for mobile phones and servers gradually improves, DRAM supply is expected to tighten. Storage chip manufacturers are currently keen to increase DDR4 and DDR5 prices in the first half of 2024, while DDR3 production and prices will remain relatively stable.
Sources say that storage module manufacturers have stocked up at low prices in the past few months, and Samsung is expected to take the first shot in the next round of DRAM price adjustments.
Korean DRAM suppliers have reduced the utilization rate of DRAM in the second half of 2023. Samsung's DRAM production in the fourth quarter of 2023 was only about 70% of the first quarter of 2023, and it was added that Samsung has increased the proportion of advanced manufacturing processes in production. It is expected that DRAM production will continue to be strictly controlled in the first quarter of 2024. Chip suppliers will rely more on advanced nodes while reducing the production of mature processes.
The top three DRAM chip manufacturers used to use 1X nm or 1Y nm processes for their DDR4, but in 2023, Samsung will transfer its 8Gb and 16Gb products to the 1Z nm process, while Micron will transfer its DDR4 production to 1 α Nm process. Storage chip manufacturers have also shifted their focus from 16Gb DDR5 to 1 α Node migration to 1 β Node.
In the fourth quarter of 2023, neither DRAM nor NAND experienced a shortage of supply, indicating that the demand in the terminal market has not yet recovered, and the outlook for February before the Lunar New Year will be relatively conservative.
A storage module factory has received a notice from Samsung to increase DRAM prices by at least 15% in the first quarter of 2024. But Samsung did not mention the pricing of NAND flash memory, but it is expected that NAND prices will continue to rise. In December 2023, DRAM prices increased by 2% -3%, significantly increasing DRAM prices, but lower than the approximately 10% increase in 3D TLC NAND for that month.
As the demand for mobile phones and servers gradually improves, DRAM supply is expected to tighten. Storage chip manufacturers are currently keen to increase DDR4 and DDR5 prices in the first half of 2024, while DDR3 production and prices will remain relatively stable.
Sources say that storage module manufacturers have stocked up at low prices in the past few months, and Samsung is expected to take the first shot in the next round of DRAM price adjustments.
Korean DRAM suppliers have reduced the utilization rate of DRAM in the second half of 2023. Samsung's DRAM production in the fourth quarter of 2023 was only about 70% of the first quarter of 2023, and it was added that Samsung has increased the proportion of advanced manufacturing processes in production. It is expected that DRAM production will continue to be strictly controlled in the first quarter of 2024. Chip suppliers will rely more on advanced nodes while reducing the production of mature processes.
The top three DRAM chip manufacturers used to use 1X nm or 1Y nm processes for their DDR4, but in 2023, Samsung will transfer its 8Gb and 16Gb products to the 1Z nm process, while Micron will transfer its DDR4 production to 1 α Nm process. Storage chip manufacturers have also shifted their focus from 16Gb DDR5 to 1 α Node migration to 1 β Node.
In the fourth quarter of 2023, neither DRAM nor NAND experienced a shortage of supply, indicating that the demand in the terminal market has not yet recovered, and the outlook for February before the Lunar New Year will be relatively conservative.