The global average contract price of PC DRAM rose 7.4% monthly in September to US$14.5 as DRAM makers adjusted their product mixes and caused PC DRAM supply to tighten significantly, says DRAMeXchange, a division of TrendForce. In the fourth quarter, the average contract price of PC DRAM will reach its highest point in two years due to stronger-than-expected notebook demand worldwide. The anticipated quarterly increase in the average contract price will be at almost 30%.
The development of China’s semiconductor sector has gained new momentum in the first year of the country’s 13th Five-Year Plan (2016~2020). According to the global market research firm TrendForce, committed policy efforts and investments from the Chinese government have resulted in the formation of four IC industry clusters that are respectively located in the country’s four major regions of activities – the Yangtze River Delta, the Pearl River Delta, the Beijing-Tianjin Bohai Sea region and the Central-Western region.
In the second quarter of 2016, demand for high-capacity eMMC/eMCP from Chinese smartphone brands and the stock-up activities ahead of the iPhone 7 release caused a gradual tightening of NAND Flash supply. The decline in contract prices for eMMC and SSDs of both client and enterprise grade also started to ease during the same period, according to the latest report from DRAMeXchange, a division of TrendForce. Channel prices of NAND Flash wafers have even begun to rise on a monthly basis since April. Consequently, the combined global revenue of branded NAND Flash suppliers increased 3.4% sequentially in the second quarter. This result signaled the end of revenue decline that persisted in the past two consecutive quarters.
According to DRAMeXchange, a division of TrendForce, recovery of the notebook market, robust smartphone shipments and growing demand for servers have all supported a high level of demand for memory components. Prices of both DRAM and NAND Flash are projected to rise in the fourth quarter, and DRAM contract prices in particular will post another sequential increase of over 10%.
DRAM prices in August were on an upward trend as they were in the previous month, reports DRAMeXchange, a division of TrendForce. The monthly average of contract prices for 4GB modules (DDR3 and DDR4) rose by 2% sequentially to US$13.5, while the monthly high rose by 3.7% sequentially to US$14.