DRAM prices are expected to rise through the third quarter of 2021 before heading for a correction in the fourth quarter, according to industry sources.
South Korea-based memory vendors have scaled down substantially their DDR3 chip output and are looking to phase out from the DDR3 segment, which will send prices rising, said the sources, adding that the supply of DDR3 chips particularly 2Gb and 4Gb ones have become tight.
Prices for 2Gb and 4Gb DDR3 chips have risen about 20% and 15%, respectively, since the start of 2021, the sources indicated. The prices are set to rally through the third quarter.
SK Hynix have suspended production of 2Gb DDR3 chips, the sources noted, adding Samsung Electronics has notified its clients about its exit from the DDR3 DRAM segment. Besides, both vendors have allocated more of their production lines for low-density DRAM products for CMOS image sensors, the sources continued.
With Samsung and SK Hynix cutting their DDR3 chip output, the global supply of DDR3 memory has fallen short of demand by an estimated 10,000-20,000 wafers monthly, according to the sources.
On the other hand, Nanya Technology and Winbond Electronics have both enjoyed a ramp-up in orders for DDR3 chips, the sources said. The Taiwan-based chipmakers have also seen a strong pull-in of orders from distributors, the sources indicated.
Downstream distributors will continue stockpiling until holding over two months of inventory, said the sources, adding that inventory correction is expected to take place in the fourth quarter.
