DRAM and NAND flash chip prices are rising

Over the past year, major DRAM and NAND flash memory chip manufacturers have chosen to strategically reduce production, artificially limiting output to curb falling prices and offset financial losses. After several months of concerted efforts, it seems these measures are bearing fruit. Currently, the prices of DRAM and NAND flash memory chips are on the rise, potentially ending the longstanding scenario of oversupply.

As reported by DigiTimes, since hitting a low in late July and early August of this year, the prices of DRAM and NAND flash memory chips have been steadily climbing over the past few months, placing major memory manufacturers like Samsung, SK Hynix, and Micron in a more secure position. During this period, the price fluctuations were influenced not only by reduced production but also by material shortages.

SK Hynix LPDDR5T 16GB memory

Although the prices of DRAM and NAND flash memory chips have yet to return to their levels at the beginning of the year, the increase over the past few months has been significant. For instance, the price of a 512GB NAND flash memory chip is almost double what it was in July, and a 256GB chip saw a 55% increase during the same period. Similarly, a set of two 8GB DDR4 memory modules experienced a 10% price hike since August.

Following the global economic slowdown post-COVID-19 pandemic, consumer spending decreased, leading to a reduction in market demand. This resulted in an oversupply of chips and high inventory levels, forcing suppliers to lower prices. Consequently, consumers were able to purchase storage products at exceptionally low prices this year. For memory manufacturers, the impact has been severe; Samsung’s profits for the first quarter of 2023 were nearly wiped out, while Micron suffered losses exceeding 2 billion dollars.

By comparison, the rise in solid-state drive (SSD) prices has been more pronounced, making it difficult to find the large-capacity, low-cost products available a few months ago. As for memory, a similar shift in the market may be on the horizon.