Average fixed transaction DRAM price in Sept bottoms out at $1.30

The figure stayed at that level after five straight months of decline but is expected to grow up to 8% in the fourth quarter

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Getty Images 
Ye-Rin Choi 1
2023-10-04 16:51:28 rambutan@hankyung.com
Korean chipmakers

The average fixed transaction price of DRAMs last month stayed at $1.30, maintaining its sluggishness in the $1 range for the ninth consecutive month.

A price rebound is expected in the fourth quarter, however, as the price of DDR5 continues to rise and that of DDR4 has bottomed out.

The Taiwan-based global market research company DRAM eXchange on Wednesday said the average fixed transaction price of general purpose DRAM products for PC use (DDR4 8Gb 1Gx8) last month was $1.30, a rate unchanged from August.

Defined as the contracted transactional amount between companies, the fixed transaction price is considered the leading indicator of market conditions in semiconductor supply and demand.

DRAM prices in September 2021 remained at $4.10 but fluctuated between steady and decline the month after. After dropping last year to $2.88 in July and $2.21 in October, the figure fell to the $1 range in January this year, stayed at $1.81 until March and decreased for five straight months after hitting $1.45 in April.

Little change was seen last month as contract price negotiations in the third quarter were completed in July and August. In the quarter, the price of 8GB DDR4 modules fell 5.3% to an average $12.50 and that of 8GB DDR5 modules rose 0.7% to $15.30.

Prices are expected to grow in the fourth quarter. Samsung Electronics Co., SK Hynix Inc. and Micron are cutting output apparently to raise prices.

“Buyers are accepting the possibility of price hikes,” the Taiwan-based global market research company TrendForce said. “Contract prices for DDR4 products in the fourth quarter will rise 0%-5% and those for DDR5 products 3%-8%.”

Write to Ye-Rin Choi at rambutan@hankyung.com

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