Due to the shrinking market of consumer electronics products such as mobile phones and tablets, the DRAM market has been in a state of oversupply since the second half of this year. Although upstream manufacturers are already controlling production and delaying production expansion plans, in order to further accelerate destocking, manufacturers have been reducing prices in recent months.
Data from market research firm TrendForce showed that in July this year, the average contract price of 8Gb DDR4 DRAM chips for personal computers fell from US$3.35 to US$2.88, a decrease of 14.03%, which is the same as that of 2019. The highest since February and the first time it has fallen below $3 since 2020. According to foreign media surveys, since the decline began on June 10, the price of DRAM spot has dropped by 18%, and compared with the price at the beginning of this year, it has dropped by 20%.
According to a report by Taiwan Business Times today, the destocking of the DRAM market has achieved initial results after price cuts. According to industry insiders, it is expected that the fourth quarter of this year can effectively reduce the inventory pressure of ODM / OEM factories, and the destocking may be completed in advance to the first quarter of next year.
TrendForce has said that the demand for DRAM next year may grow by 8.3%, which is the weakest bit of growth in history, and the supply is expected to increase by 14.1%. Bit growth refers to the amount of memory produced and is a key barometer of global market demand.
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