[Insights] Memory Spot Price Update: DRAM Price Down Again Due to Chip Supply Increase Led By Samsung

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According to TrendForce’s latest memory spot price trend report, sellers, in particular Samsung, have increased the chip supply, therefore pushing DRAM prices downward, while DDR4 products suffer from higher inventory. Regarding NAND Flash prices, the retail market is less willing in replenish orders, together with how wafer prices have been surging from the bottom, the depletion of spot prices could carry on. Details are as follows:

DRAM Spot Price:

The spot market has yet to show a demand turnaround; and sellers, in particular Samsung, have increased the chip supply, thereby pushing prices back down again. Looking at different types of DRAM products, module houses and channels have relatively high inventory levels for DDR4 products. Hence, the downward pressure on spot prices of DDR4 products is greater compared with spot prices of DDR5 products. Overall, even though contract prices have again registered significant increases in 2Q24, this rally has no positive effect on spot prices. Instead, spot transactions continue to show declining quantity, and the downward price pressure has become more pronounced. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) has dropped by 1.19% from US$1.940 last week to US$1.917 this week.

NAND Flash Spot Price:

The Chinese government’s cracking down on smuggling of memory products, as well as the persistently sluggish demand from the retail market, have prompted module houses to amplify their sales intensity to actively pursue transactions, which led to a loosening in prices. Without replenishment of orders within the retail market, together with how wafer prices have surged from rock bottom to nearly 80% by now, the depletion of spot prices could carry on in the near future. Spot price for 512Gb TLC wafers has dropped by 2.61% this week, arriving at US$3.579.