Raevenlord
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DRAMeXchange, a division of TrendForce, today reported that the average contract price of 4GB PC DRAM modules increased over 20% between September and October of 2016 (jumping from US$14.5 to US$17.5) as DRAM suppliers completed their fourth-quarter contract negotiations with first-tier PC-OEMs.
These increases come as the result of production capacity gradually shifting from PC-centric DRAM towards mobile and server DRAM, which have seen tremendous growths in demand. In fact, PC DRAM memory accounts for less than 20% of overall DRAM production. The already low inventories of branded device makers go hand in hand with higher-than-expected demand for DRAM-carrying products. And this higher demand comes after the PC DRAM market being severely undersupplied in the second half of 2016. The result: an across-the-board price upturn for all types of DRAM.
TrendForce reports that this DRAM price increase also stands as proof of the changing paradigm between the three top memory makers: Samsung, Hynix, and Micron, which TrendForce reports have "opted for co-existence as the best way to maximize their own profitability." They are, therefore, "turning away from aggressively competing for market share through price reduction and capacity expansion."
TrendForce's report goes on projecting that the top three suppliers will either keep their capital expenditures for 2017 at the same level as this year or lower their spending even further. And with the top players in the DRAM production business shifting their consensus from market leader to maintaining profitability, even further price hikes are expected during 2017.
View at TechPowerUp Main Site
These increases come as the result of production capacity gradually shifting from PC-centric DRAM towards mobile and server DRAM, which have seen tremendous growths in demand. In fact, PC DRAM memory accounts for less than 20% of overall DRAM production. The already low inventories of branded device makers go hand in hand with higher-than-expected demand for DRAM-carrying products. And this higher demand comes after the PC DRAM market being severely undersupplied in the second half of 2016. The result: an across-the-board price upturn for all types of DRAM.
TrendForce reports that this DRAM price increase also stands as proof of the changing paradigm between the three top memory makers: Samsung, Hynix, and Micron, which TrendForce reports have "opted for co-existence as the best way to maximize their own profitability." They are, therefore, "turning away from aggressively competing for market share through price reduction and capacity expansion."
TrendForce's report goes on projecting that the top three suppliers will either keep their capital expenditures for 2017 at the same level as this year or lower their spending even further. And with the top players in the DRAM production business shifting their consensus from market leader to maintaining profitability, even further price hikes are expected during 2017.
View at TechPowerUp Main Site
