DRAM contract prices rebound after 27 months on rising demand

The price gain will continue into 2024 on the consumer electronics market recovery, sources say

Samsung Electronics' DDR5 DRAM (Courtesy of Samsung)
Samsung Electronics' DDR5 DRAM (Courtesy of Samsung)
Jeong-Soo Hwang 2
2023-11-01 20:13:42 hjs@hankyung.com
Korean chipmakers

DRAM contract prices rebounded for the first time in more than two years last month amid the recovery in the consumer electronics market.

The price gain will continue next year as demand for high-performing DRAM chips, such as Low-Power Double Data Rate (LPDDR) for smartphones and DDR for computers, is rising and digital device manufacturers’ DRAM inventories have decreased, industry sources said.

The contract price of DDR4 8Gb 2133MHz, DRAM widely used for PCs, jumped 15.4% on-month to $1.5 in October, according to market data provider TrendForce's memory and storage division DRAMeXchange on Wednesday.

It was the first contract price gain in 27 months, since July 2021 when it rose 7.89%. The October increase is the largest since it logged 26.7% in April 2021.

The contract price for DDR5 16Gb SO-DIMM, a high-capacity module for laptops, also rose 11.5% on-month to $33 per unit in October.

DRAMs for smartphones are also expected to show hikes in contract prices. Fourth-quarter contract prices for mobile DRAMs are poised to see an increased quarterly rise of 13-18%, according to a TrendForce report last week.

The contract prices for NAND Flash will also increase, with prices of eMMC and UFS forecast to climb 10-15% in the fourth quarter, the report said.

The quarterly rise can be attributed to several factors, such as Samsung Electronics Co.'s production cuts and Micron Technology Inc. rolling out price hikes of more than 20%. These have laid the foundation for industry-wide confidence in price increases, according to the report.

Further, demand during the second half of this year has been boosted by catalysts like Huawei Technologies Co.'s new smartphone series Mate 60, which has prompted other Chinese smartphone brands to expand their production targets, the report added.

The DRAM oversupply of more than two years is coming to an end, and smartphone makers gearing up to launch premium products are accepting price increases from DRAM chip suppliers like Samsung Electronics and SK Hynix Inc., the world’s two largest memory chipmakers, industry sources said.

The upward trend in the contract prices will continue for a while into next year, they added.

Stock prices of Korean chipmakers climbed on Nov. 1 on news of the DRAM contract prices rebound. Samsung's shares rose 2.54% to finish at 68,600 won ($50.5), while SK Hynix's increased 3.44% to close at 120,300 won.

Write to Jeong-Soo Hwang at hjs@hankyung.com


Jihyun Kim edited this article.
#DRAM memory chip prices #DRAM contract prices #TrendForce DRAM price report #DRAM demand forecast #Samsung Electronics DRAM #SK Hynix DRAM

Samsung showcases HBM3E DRAM, automotive chips

Samsung showcases HBM3E DRAM, automotive chips

SILICON VALLEY -- Samsung Electronics Co. on Friday showcased a number of new-concept, next-generation DRAM chips, including the industry’s most advanced HBM3E, alleviating market concerns that it might trail local rival SK Hynix Inc. in the super-giant AI chip market.At Samsung Memory T

SK Hynix pins high hopes on specialty DRAM for AI use: CEO

SK Hynix pins high hopes on specialty DRAM for AI use: CEO

SK Hynix Co-CEO Kwak Noh-Jung discusses the company's future strategy with employees on its 40th anniversary In the semiconductor industry, it’s been quite a while since memory chips became a commodity, meaning so low an entry barrier that any chipmaker can easily mass-produce them, leadi

Samsung set to keep supremacy in low power DRAM with game changer

Samsung set to keep supremacy in low power DRAM with game changer

Samsung Electronics' LPCAMM (Courtesy of Samsung Electronics)  South Korea’s No. 1 memory chip maker Samsung Electronics Co., also the world’s top player, is set to further break away from the pack with advanced memory chip products that are expected to bring a paradigm shift t

HBM market to nearly double; next-gen DRAM to revive demand: KIW

HBM market to nearly double; next-gen DRAM to revive demand: KIW

SK Hynix Inc. and Samsung Electronics Co. are confident that a new memory chip market renaissance is just around the corner thanks to the generative artificial intelligence sensation, which is expediting the development of customized, high-performance next-generation chips.“An AI server

SK Hynix leads DRAM industry’s Q2 revenue rebound, retakes No. 2 spot

SK Hynix leads DRAM industry’s Q2 revenue rebound, retakes No. 2 spot

SK Hynix Inc. saw its DRAM chip shipments significantly increase in the second quarter, leading the industry’s overall revenue rebound, market data showed.The South Korean chipmaker also regained its global No. 2 spot, leapfrogging Micron Technology Inc., which fell to third place.SK Hyn
(* comment hide *}