Tuesday, December 7, 2021

DRAM prices to rise further in Q2 2021: TrendForce

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Graphics cards are on the rise and expected to continue to rise, but the same is expected of DRAM. Research firm Trendforce predicts that DRAM (Dynamic Random-access Memory) prices will rise 13-18% in Q2 of 2021 & they already rose 3-8% in Q1 of 2021.

DRAM Prices Rose In Q1 Of 2021 And Expected To Continue The Rise In Q2 Of 2021

A report published by DigiTimes states that PC DRAM buyers have been stockpiling currently but hold “relatively low” inventory levels, worth about 4-5 weeks. The buyers are purchasing a majority of DRAM right now so that they will not have to buy the DRAM at a higher price later this year. Hopefully, this will help mitigate price hikes and reduce the cost of DRAM for consumers, which is expected to rise more than 15% for a single 8GB stick of DDR4 RAM.

In the wake of the increasing demand for memory chips, DRAM suppliers have maintained consistent production. Still, the increase in demand coupled with limited production will only see prices rise as they normally do with shortages, as seen with most current-gen GPUs. The server market has had an increasingly higher demand for memory chips and will continue to increase in the second quarter – traditionally seen as a peak season for servers. The high demand has also been seen in the smartphone market. Although the smartphone market is large, DRAM suppliers’ priority is the server market, and it is predicted that the memory chips for servers will rise 20% in price for Q2 of 2021.

This shortage is just another shortage of the hardware industry. There are ongoing shortages involving semiconductors, NAND Flash, graphics cards, and now DRAM. If you absolutely need to build a new PC at this time, you’ll be paying a heavy premium for most components. On the consumer side, in the second half of 2021, DDR5 memory is expected to make its debut but we can expect initial units to feature premium price points. 


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