DRAM chip prices are expected to continue a mild uptrend this quarter on a contract basis, driven by bigger memory space for new Android-based smartphones and servers, market researcher TrendForce Corp (集邦科技) said yesterday.
The price increases are likely to come to an end in the final quarter of this year, as the uptrend weakens on a quarterly basis, TrendForce said in a report.
The slight price uptick is to follow a 3.2 percent quarterly hike during the current quarter, despite rising global DRAM chip output as the world’s major DRAM chip suppliers ramp up 1X and 1Y process technology, the Taipei-based researcher said.
The output increase was capped by relatively lower yields and unstable product quality last quarter, TrendForce said.
Output growth is forecast to pick up to a quarterly pace of 4.8 percent next quarter as chipmakers ship more 1X and 1Y chips after those issues are to gradually resolved, it said.
“On the demand front, the market should witness steady inventory buildup demand as most vendors have not restored their inventories to a safe level yet,” TrendForce senior research director Avril Wu (吳雅婷) said.
“Coupled with seasonal demand, DRAM average selling prices are to see a marginal rise. That will bring global DRAM revenue to a new high in the third quarter of 2018,” Wu said.
Worldwide DRAM revenue surged to an all-time high of US$23.08 billion in the first quarter, TrendForce tallies showed.
The researcher expects DRAM chips for servers and mobile phones to climb 1 to 2 percent sequentially this quarter.
Mobile DRAM prices are rising due to growing adoption of low-power DDR4 DRAM chips and memory content expansion to 6 gigabytes, or even 8 gigabytes per unit, it said.
TrendForce gave a bleak outlook for graphics DRAM and niche DRAM chips for consumer electronics due to a sharp drop in cryptocurrency demand, it said.
The price increases forecast earlier this year might not materialize, it said.
Prices for graphics DRAM, in particular, might begin to fall in the second half after drastic prices increases in the first half, the researcher projected.
Resilient demand helped fuel growth at local DRAM chipmakers last month.
Nanya Technology Corp (南亞科技), the nation’s largest DRAM chipmaker, posted a record-high monthly revenue of NT$8.33 billion (US$273 million), while Winbond saw its revenue increase to a seven-month high of NT$4.49 billion.
Nanya Technology shares tumbled 2.64 percent to NT$81, while the stock price of Winbond Electronics dipped 2.05 percent to NT$19.1.
Both stocks underperformed the TAIEX, which slid 0.54 percent.
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