DRAM and NOR flash memory prices will continue to rise but at a slower pace in the third quarter of 2021, according to industry sources.
DRAM contract prices are expected to grow 10-15% sequentially in the third quarter after an over 20% rally in the prior quarter, while growth in NOR flash prices will also decelerate in the second half of this year, the sources said.
Meanwhile, NAND flash contract prices have stopped falling and just begun to rise, the sources indicated.
Limited growth in DRAM chipmakers' capacity has been buoying the chip prices, particularly DDR3 prices, the sources noted. Prices for DDR3 and other specialty DRAM chips have jumped over 100% since the end of 2020, the sources said.
Specialty DRAM prices are expected to rise through the end of 2021, as the chip supply remains short of demand, the sources said. But the price growth will decelerate in the second half of the year.
Suppliers including Nanya Technology and Winbond Electronics are both set to see their second-quarter profits boosted by rising specialty DRAM ASPs, according to market observers.
Memory IC design house Elite Semiconductor Memory Technology (ESMT) said previously that prices for DDR3 chips may remain higher than those for DDR4 ones for a while, as the former's supply remains severely tight.
NOR flash prices have also surged 50-60% since late last year, the sources said. Foundries' available capacity for NOR flash memory remains constrained, which will likely result in a continued supply shortfall.
Macronix International chairman Miin Wu noted previously that the ongoing tight supply of NOR flash chips will likely persist over the next two years. Macronix is among the world's major NOR flash chipmakers.
As for NAND flash, contract prices for both SLC and MLC NAND chips have stopped falling and grown by 5-10% in the second quarter, according to the sources. Prices are poised for another rally of 10% or more in the third quarter, as the target markets of the memory enter their peak season.
Memory prices continue rally
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