DRAM and NAND flash memory chips suffered a price drop in October, and it might be due to the US’s government having restricted the Chinese tech giant, Huawei, from gaining access to its chipsets.
A research firm DRAMeXchange informed that in October, prices of DDR$ 8GB DRAM dropped to $2.85 and 128GB NAND FLASH to $4.2, respectively. Last month, the deflation was about 8.9% for DRAM and was 3.4% for NAND chips. Comparing the 5% drop in July was lower than the last month’s drop.
The report says that the price of DRAM will drop as high as 10% due to the continuous fall in the last quarter of this year. The price didn’t drop so drastically in Q3 because, Huawei accumulated huge stock, after facing a ban in the US.
Samsung informed that the expected memory prices would be weak in the fourth quarter. The company has also assured that it will increase the investment of its semiconductor facility next year. In a conference call, Samsung said that “despite strong demand for laptops and mobile phones, memory demand in the fourth quarter will continue to weaken as customers adjust their inventories.”
Let’s see how the memory market will likely recover in the next year. SEMI has assumed that in 2021 semiconductor fab spending will rise by 18%. Some analysts believe that NAND is a less affected market, and due to the high demand for 5G networks in South Korea, the NAND prices have not declined drastically.
Do check out:
