DRAM prices jump 1% on slowing supply growth

The fixed trading prices of DDR4 1Gb 2133MHz prices rose 1.07% on-month to USD 2.84 in January, indicating a gradual increase in DRAM prices, helped by a limited increase in supplies by memory chip makers, according to DRAMeXchange on Jan. 31.

This marks the first price rise in more than a year since December 2018. DRAMeXchange explained that tighter supplies have triggered the climb.

With DRAM supply increase rates to be at record-lows this year – Samsung, SK hynix and Micron are all anticipated to raise supply volume by less than 20% – DRAMeXchange expected DRAM prices to continue rising in February and March.

The chipmakers have said they are cutting down on supplies both to cope with an ongoing supply glut and due to technological limitations. “Most chipmakers are struggling to expand the production of 10nm DRAM chips,” said one market watcher.

Meanwhile, the fixed trading prices of NAND flash (12Gb MLC), which has been showing signs of recovery since late 2019, jumped 3.17% to USD 4.56 for January.

DRAMeXchange noted that January’s prices were negotiated before the lunar new year’s holiday, meaning they weren’t affected by the Coronavirus. But it added that the chip industry should now take care to analyze the effect of the pandemic.

The Elec is South Korea’s No.1 tech news platform.