DRAM prices could start to dip next quarter as supply outgrows demand, ending nine straight quarters of growth, market researcher TrendForce Corp (集邦科技) forecast yesterday.
That bodes ill for the price outlook for next year, as many DRAM chipmakers continue to upgrade to 1X or 1Y process technologies, the Taipei-based researcher said.
Average DRAM prices will see a slight decline between 1 and 3 percent next quarter from this quarter, with PC DRAM chips, which account for 15 percent of overall DRAM consumption, falling as much as 4 percent due to inventory buildup among PC vendors, TrendForce said.
“PC DRAM chips usually serve as an indicator for other types of DRAM chips, as they are highly sensitive to supply-demand dynamics,” TrendForce said.
Chipmakers continue to add capacity for DRAM chips used in servers and mobile phones as supply constraints over the past quarters have been resolved and DRAM chips for servers could either see prices stabilize next quarter or a 2 percent decline from this quarter, TrendForce said.
Nanya Technology Corp (南亞科技) has said that it plans to ship a small volume of DRAM chips for server use by the end of this year.
Meanwhile, the supply of mobile DRAM chips is to also slightly increase next quarter as the world’s top three DRAM suppliers, Samsung Electronics Co, SK Hynix Inc and Micron Technology Inc, add capacity to meet demand.
However, mobile DRAM chip prices could remain flat next quarter, thanks to estimated growth of between 5 and 10 percent in smartphone sales as Apple Inc and Android smartphone vendors launch new products, TrendFroce said.
Prices for specialty DRAM chips, which are mostly used in consumer electronics, could drop as much as 3 percent next quarter from this quarter, as demand is likely to remain soft ahead of the traditional high season for consumer electronics, TrendForce said.
High set-top box inventories could pile more pressure on prices for specialty DRAM chips, it said.
SK Hynix is next year to start cranking out chips from a new fab in Wuxi in China’s Jiangsu Province, TrendForce said, adding that it would cause DRAM prices to plunge 15 to 25 percent from this year’s average.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
Industrial production expanded 22.31 percent annually last month to 107.51, as increases in demand for high-performance computing (HPC) and artificial intelligence (AI) applications drove demand for locally-made chips and components. The manufacturing production index climbed 23.68 percent year-on-year to 108.37, marking the 14th consecutive month of increase, the Ministry of Economic Affairs said. In the first four months of this year, industrial and manufacturing production indices expanded 14.31 percent and 15.22 percent year-on-year, ministry data showed. The growth momentum is to extend into this month, with the manufacturing production index expected to rise between 11 percent and 15.1 percent annually, Department of Statistics
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
RSS