DRAM and NAND Flash prices are expected to remain throughout the remainder of 2020.
According to DRAMeXchange, PC DDR4 8Gb DRAM had a contract price of US$3.13 as of September, same as the price of August.
USB 128Gb MLC NAND Flash contract price was also fixed at US$4.35 as of September, same as August.
The fourth quarter will likely see chip prices drop further as the oversupply situation continues.
DRAM spot prices increased in mid-September. This is likely due to Huawei buying them more from the US sanctions against the company taking effect on September 15.
SK Hynix has said during its second quarters earnings that the market will hit bottom in the second half of 2020.
DRAMeXchange said DRAM was oversupplied in the market and there was no clear force to increas prices.
PC DRAM prices will likely drop 10% in the fourth quarter compared to the third quarter, the firm said. Spot prices will also drop due to demand nosediving from Huawei.
Micron said it expected sales to decline in the third and fourth quarters drop losing Huawei’s orders.
Samsung Electronics and SK Hynix will likely face the same troubles as their US rival. Huawei accounted for 3.2%, or 7.37 trillion won, of Samsung’s sales last year. The Chinese firm accounted for 11.4%, or 3 trillion won, of SK Hynix’s 2019 sales.
The memory market will likely recover starting in the first half of 2021. Data centers will likely increase demand for DRAM by up to 20% __ SEMI expects equipment investment to increase 18% next year compared to 2020 to reach US$31.2 billion thanks to strong memory demand.
