[News] Nanya Tech Expects Continued Conservative Spending to Balance DRAM Supply-Demand in 2024

2023-10-12 Semiconductors editor

On October 11, Nanya Technology held an investor conference where CEO Li Pei-Ying noted that DDR5 prices have risen. Nanya Technology’s primary products, DDR3 and DDR4, have halted their decline, with recent negotiations indicating potential price increases and an expected improvement in ASP (average selling prices) in the fourth quarter. The bit growth rate is also expected to show a slight improvement, leading to an overall amelioration in the loss situation.

Li Pei-Ying stated that in terms of overall market supply, various DRAM manufacturers are increasing their supply of DDR5 and HBM products. This is beneficial for depleting DDR4 inventories, and the DRAM industry’s conservative approach to capital expenditure and wafer production capacity is expected to help restore a healthy supply-demand balance by 2024.

On the demand side, in the server sector, enterprise cloud applications are driving demand for AI computing and DDR5. Nanya Technology anticipates that the server market may gradually improve from the fourth quarter onwards. In the mobile sector, the continued development of AI applications in smartphones globally is expected to boost upgrade intentions, and there is an opportunity for a rebound in smartphone sales in the Chinese market from the fourth quarter.

In the PC sector, the launch of new products is expected to drive demand for DDR5 and LPDDR5, gradually replacing DDR4 and LPDDR4 as the mainstream options. In the consumer electronics sector, including televisions, IP cameras, networking, industrial control, and automotive applications, demand is maintaining steady growth.

(Photo credit: Nanya Technology)