Mobile DRAM Prices on the Rise Owing to Low-Power DDR4 DRAM Chips

A recent public report published by the market researcher TrendForce Corp suggests that a mild rise in the prices for DRAM chips is expected in this quarter. This rise will come as a result of increasing adoption of low-power DDR4 DRAM chips and memory content expansion to 6GB and more in latest Android-based servers and smartphones. These price hikes will come to an end by the final quarter of 2018 as the uptrend tends to weaken on a quarterly basis.

The researcher based in Taipei also suggested that during the present quarter, the slight price hike will follow a 3.2 percent quarterly rise. This will happen even though international DRAM chip output is rising because the world’s biggest DRAM chip suppliers are ramping up 1Y and 1X process technology. In the last quarter, unstable product quality combined with relatively lower yields caused the reduction in output. As these problems will gradually come to a resolution, chipmakers will be seen shipping more 1Y and 1X chips in the next quarter, hence increasing the output growth.

Avril Wu, the senior research director at TrendForce said, ““On the demand front, the market should witness steady inventory buildup demand as most vendors have not restored their inventories to a safe level yet,” He further commented, “Coupled with seasonal demand, DRAM average selling prices are to see a marginal rise. That will bring global DRAM revenue to a new high in the third quarter of 2018.”

TrendForce tallies also revealed an all-time high surge of US$23.08 billion in the worldwide DRAM revenue in the first quarter. It is expected that DRAM chips for servers and mobile phones will climb one to two percent sequentially in this quarter.

Graphics DRAM and niche DRAM chips may face a bleak outlook in consumer electronics as there may come a sharp drop in the demand for cryptocurrency. Therefore, the price hikes expected earlier in this year may not materialize. Prices of graphics DRAM might face reduction in the second half after a rapid rise in the first half.

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