Hardware

DRAM makers expect prices to normalize by year-end

During Taiwan's Nanya Technology Corporation's third-quarter results presentation last Friday, Chairman Dr. Pei-Ing Lee commented that they expect DRAM prices to decline by the end of this year. This is how they hope that recent increases in DRAM prices globally will be offset.

This is due to current market and supply chain conditions, which may actually be partly triggered on purpose according to statements and investigations by TSMC. As DRAM prices drop, the prices of products that use it should drop several months later, when more stock begins to arrive in stores.

DRAM prices may soon drop

Although demand remains strong in DRAM-consuming commodities, the DRAM market is expected to enter a small short-term correction in the fourth quarter of this year 2021. But Nanya Technology Corporation may be in a position disadvantage to maintain higher selling prices on its products, due to its focus on specialty DRAMs. They are responsible for supplying different sectors, but the automotive, home, entertainment and business solutions sectors are the sectors in which they have had the most problems in this shortage of components.

Nanya Technology Corporation typically ranks fourth among the world's DRAM makers, behind Samsung, SK Hynix, and Micron. They do not compete at the same level as those manufacturers and are only 3%, well below 42% of Samsung, 29% of SK Hynix and 23% of Micron.

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Nanya and low sales ratio make it more difficult to secure materials for DRAM manufacturing by not covering as much volume. Industry analysts DRAMeXchange, Gartner and IDC already predict a reduction in the price of inbound DRAM due to oversupply, so Nanya would not be the only company with reduced revenue going forward in the face of current events.

Source: Tom's Hardware

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Benjamin Rosa

Madrileño whose publishing career began in 2009. I love investigating curiosities that I later bring to you, readers, in articles. I studied photography, a skill that I use to create humorous photomontages.
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