After experiencing the longest decline cycle in history, storage manufacturers finally saw the hope of recovery in the DRAM market. According to TrendForce, as major storage manufacturers continue to reduce production, the effect of destocking the market has become apparent. It is expected that after NAND Flash prices recover, DRAM prices will also rise.
In order to reduce losses, NAND flash memory suppliers have made multiple production cuts since 2023, and the relevant effects have already been seen. It is reported that NAND Flash chip contract prices rebounded in August and continued to rise in September.
Industry giant Samsung continues to cut production, mainly in sub-128-layer products, down 50% in September, prompting other manufacturers to follow suit.
Market experts also predict that NAND flash memory prices will continue to rise in the fourth quarter. TrendForce is optimistic about NAND flash prices in the fourth quarter, estimating growth of about 3% to 8%, higher than its initial forecast of 0% to 5%.
TrendForce’s view is that DRAM’s recovery will be slightly later, and it is expected to start rising in the fourth quarter of this year, marking the beginning of a new growth cycle.
Industry experts point out that the rise in DRAM prices is not only due to factors such as production cuts and inventory clearances, but is also related to the artificial intelligence market. Limited demand for DDR5 in the data center market driven by AI applications led to an early price spike.
