The global memory market has once again set off a price trend. After SanDisk announced that its product price had exceeded 10% a few weeks ago, Micron also reported last weekend (September 12) that it notified customers that it had suspended DRAM and NAND products for one week, and the agreements including DDR4, DDR5, LPDDR4, LPDDR5 and other agreements will be cancelled, and new prices are expected to be reopened in one week. According to the industry, Micron's DRAM expansion this time is as high as 20% to 30%, of which vehicle and industrial products are more likely to increase by 70%.
Market reading, Micron is not a routine adjustment, but an urgent response to the imbalance of supply and demand. The supply chain pointed out that after Micron's disk customer demand, it found that the data center construction and AI servers used large-capacity memory pull-outs to rapidly increase, and the demand for vehicle electronics also rebounded sharply. In addition, Samsung and SK Hynix's automatic conversion to high-frequency wide memory (HBM), making traditional DRAM supply more tight. As inventory levels generally dropped to less than a month, the increase in demand has rapidly amplified the supply and demand gap.
Microtron's response to this remains low, only pointing out that memory products are indeed comprehensively adjusted, but the number of surplus flowing outside is not the company's official information. Since Micron will announce its financial report on September 23, it is currently in a silent period and will not make further comments on market rumors.
The legal person pointed out that Micron's shouting will drive the overall market to rise again. Not only will the DRAM price continue to rise, but the growth may also be extended to NAND Flash. It is reported that domestic DRAM factories Nanyako and Huabon Electric are also planning to significantly adjust their prices in the third and fourth quarters, with a growth rate of more than 50%.
TrendForce's latest statistics also confirmed that the market is in a tight position. The 8Gb DDR4 contract price has surged from US$3.9 in July to US$5.7 in August, with a monthly increase of 46%, making it the most popular product in recent years. According to the legal analysis, DDR4 has been strong since the second quarter. Although it may take a little rest, the price is still supported as the original factory continues to shrink and supply; while DDR5 is under tight supply, the continued increase in strength is expected to be further enlarged. In the module factory, businessmen such as Viagra, Chuang, Shishang, Yiding, and Yuzhan are expected to benefit from this surge in price cycle, boosting operation performance in the second half of the year.