DRAM Prices Expected to Rise by 15% in Q1 2017

According to the latest research report at DRAMeXchange, the DRAM market will be still booming in the first quarter of 2017 despite off-season effect. The global DRAM market in the first quarter of 2017 will benefit from the stock-up activities ahead of the Chinese New Year holidays and the widespread expectations of tight supply. The average contract price of PC DRAM 4GB modules is estimated to rise by around 15% sequentially to reach US$20. 
“The oligopoly of the three major suppliers is firmly established, and upgrading the manufacturing technology beyond 20nm have yielded fairly limited increases in bit supply,” said Avirl Wu, research director of DRAMeXchange. “Also, the major suppliers are not planning to expand their capacities in the near future and are actually slowing down in the development of their respective leading edge technologies. Therefore, the undersupply situation will persist into 2017.”
Since the suppliers don’t have capacity expansion plans in the short term, the prices of DRAM are expected to keep rising in 2017.

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