Prices for DRAM components grew steadily started in the beginning of second quarter due to the absence of capacity expansions in the industry, the growing obstacles faced by suppliers transitioning towards 2xnm manufacturing technology, and the anticipation towards the impending peak quarters. The DDR3 1600 MHz 4Gb prices climbed to as high as US$ 4.6 during July 18th, 2014.
According to DRAMeXchange, a division of global research firm TrendForce, global mobile DRAM revenue amounted to US$3.3 billion in the second quarter, accounting for 31% of DRAM industry value, a slight increase over 29% in the first quarter. As DRAM supply is tight worldwide, mobile DRAM prices stabilized in the second quarter.
The eased price drops in the NAND Flash market and growing OEM demands at the end of May have provided a much needed boost to the branded suppliers’ Q2 revenues, which increased by an estimated 5.6% QoQ to US$ 7.649 billion, according to Sean Yang, Research Assistant Vice President of DRAMeXchange, the memory and storage research division of TrendForce.
For the entire 2Q14, global DRAM industry value reached US$10.8 billion, an increase of 9% compared to the previous quarter, according to DRAMeXchange, the memory and storage research division of TrendForce. The impressive scale of the industry’s value, along with the market's improved profitability, are the result of the DRAM manufacturers' effective product mix adjustments.
The majority of the contract prices for the third quarter has been settled in 2H'July, according to DRAMeXchange, the memory and storage research division of TrendForce. The average 4GB contract prices have reached US$32, a 4.92% increase compared to the same period a month ago, while the highest contract prices rose an estimated 6.45% to US$33.