DRAM & NAND Flash Brace for 23% Price Hike, Brace Your Wallets!

According to the latest statistics from TrendForce, the first quarter of 2024 is expected to witness a price increase in mobile DRAM and NAND flash memory (eMMC/UFS), with an anticipated rise ranging between 18 to 23%. The increase may be further amplified due to the oligopolistic market structure or panic buying by brand clients.

TrendForce notes that production plans of Chinese smartphone manufacturers remain robust for the first quarter of 2024. As memory prices are clearly on the rise, this has prompted buyers to actively expand their purchasing needs to build up secure and relatively low-cost inventories. Historically, the smartphone market has been among the first consumer products to reflect economic downturns, with both buyers and sellers continuously adjusting their supply chain inventories. With inventory levels now at a nadir and the impact of manufacturers’ production cuts, these two factors are driving a strong upward trend in memory prices used in smartphones.

Looking at the overall market, client demand continues into the first quarter of 2024, sustaining the upward trajectory of memory prices. With manufacturers not increasing production capacity, the supply-demand gap is widening. However, the rise in prices for memory used in mobile platforms is more pronounced compared to other market segments, making it the leading growth factor in the first quarter of 2024.

Over the past year, major DRAM and NAND flash memory chip manufacturers have opted to reduce production, artificially limiting output capacity to curb price declines and bridge loss gaps. After months of effort, this strategy appears to be bearing fruit; the entire market for DRAM and NAND flash memory chips is currently experiencing a price surge, marking an end to the long-standing situation of oversupply.