Price rebound! This type of chip is starting to slightly increase by 5% -10%

As the reduction in production by upstream factories gradually becomes evident, there is a slight trend of price increase in some specifications of storage chips.

New specification DDR5 price rebound

According to BusinessKorea, the latest DRAM specification DDR5 is starting to experience a price rebound.

According to market research company DRAM Exchange on August 31st, the latest DRAM specification DDR5, 16Gb (2Gx8), has a fixed transaction price of an average of $3.40, an increase of 7.26% from the price of $3.17 last month. According to analysis, due to the supplier's strong attitude in price negotiations, the demand side enterprises have also accepted a small price increase.

TrendForce further stated that "the demand side is increasing inventory of DDR5 products due to expected price rebound." They expect that "DRAM fixed trading prices will remain stable in the fourth quarter, but DDR5 may increase slightly, up to 5%

Japanese foreign investment also issued the latest report stating that due to the growth of DRAM prices and export volume, semiconductor exports are expected to increase by over 10% in the third quarter. After the strong growth of shipment volume in the second quarter, the main memory prices have stabilized or increased in the third quarter. The combination of HBM, DDR5, and LPDDR5X with higher prices has increased, and the average selling price (ASP) may increase by 5-10%;

However, except for DDR5, the fixed trading prices of memory semiconductor DRAM continued to decline in August. Among them, the average fixed transaction price for General PC DRAM DDR4 8Gb (1Gx8 2133MHz) was $1.30, a decrease of 2.99% compared to the $1.34 price last month. The report on Japanese foreign investment also mentioned that the DDR4 sector, which has weak demand, may expand production reduction in the fourth quarter, and there is a chance for year-end inventory to drop to normal levels.

NAND spot price increases by approximately 5% per month

According to a report from Taiwan Media Electronic Times, in the past month, the spot price of NAND Flash has continued to rise slightly, with a monthly increase of about 5%, gradually approaching the contract price.

Sources have revealed that the spot price of NAND flash memory wafers increased significantly in August. Although the price of 512GB NAND flash memory wafers remained stable between $1.40 and $1.41 in June and July, purchasing sentiment remained sluggish. But the price started to rise from the end of July and early August, reaching $1.50- $1.52 by the end of August.

According to TrendForce Consulting, the main reason was that in late August, the original NAND Flash factory further negotiated a new Wafer order with some indicator module factories, and successfully raised the 512Gb Wafer contract price. Other original factories also followed up to increase the prices of their products of the same level, indicating that the original factory was unwilling to trade at a lower price, which led to a short-term rise in the Wafer spot market.

However, under the control of upstream supply, there has been a slight rebound in downstream market demand recently, mainly in the US market, including the PC/mobile phone market, which has driven manufacturers' revenue.

Taking Nand flash module manufacturer Qunlian as an example, downstream customers are optimistic that prices have been hovering at the bottom for a long time, worried about price increases, and have started to restart stocking and accept price increases. The legal representative estimates that Qunlian's revenue will first rise in August and will continue to rise again in the fourth quarter.