Prices of DRAM Products to Increase by 30% in Q1 2017

The NAND and DRAM makers have both had a great year of 2016. The latest analysis by DRAMeXchange indicates that the prices of various DRAM products will increase significantly in the first quarter of 2017 due to continuous tight supply.

The contract prices of DDR3 4GB PC DRAM modules have reached US$25, and prices of DRAM products will see an estimated sequential quarterly increase of more than 30% on average. It would mean a lot by making a record for the off-peak season.

“The average contract price of R-DIMM 32GB server DRAM modules has already broken through the US$20 ceiling and is expected to see a sequential quarterly increase of over 20%. As for mobile DRAM products, their demand continues to grow as Chinese smartphone brands stock up for the upcoming Chinese New Year promotions. Contract prices of discrete products and eMCP solutions are projected to increase by over 10% versus the fourth quarter of 2016.”

DRAM suppliers will be more conservative though. In order to keep profits high they will be cautious on capacity expansion. DRAMeXchange estimates that the global DRAM bit supply will grow by just 19% annually in 2017, far below rates of at least 20% to more than 30% in the past years. 

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