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DDR2 and DDR3 RAM went up in November, while modern DDR4 remained stable
TrendForce Analysts Highlight Interesting DRAM Market Situation. From October to November inclusive, DDR4 memory did not change in price, while less dense DDR3 and DDR2 chips began to be offered at a higher price. The least dense chips DDR3 1 Gbit and DDR2 512 Mbit went up the most, and there is a logical explanation for this.
According to experts, the SARS-CoV-2 coronavirus pandemic and the subsequent transition to self-isolation and remote work spurred the demand for TVs and other electronics, and now even kettles fall into this category. All this gave rise to an increased demand for memory for digital devices. Naturally, this is, first of all, low-density memory.
The second reason for the increase in demand for DDR3 and DDR2 chips was the development of the 5G ecosystem and the growing need for modems, routers, switches and other active network equipment, which also actively consumes RAM, we emphasize, not of the highest density.
Finally, both South Korean DRAM manufacturers – Samsung and SK Hynix – are gradually quitting the production of DDR3 and DDR2 memory chips, and some of them have been discontinued altogether. Now such companies as Taiwanese Winbond, ESMT and Etron are being blown away for them, which also does not contribute to lower prices.
Finally, low-density memory is usually bought either in relatively small amounts, or it is done by small manufacturers. Thus, they do not have the opportunity to push through prices and long-term contracts that are of interest to them, and the market for short deals, moreover, is prone to panic. All this also contributed to the monthly increase in the average selling prices of DDR3 and DDR2 chips.
Image source: TrendForce
A similar situation in the DRAM market, TrendForce is sure, will last until the first quarter of 2021, when server manufacturers can come to life and start purchasing large quantities of DDR4. Until that moment, the price situation will be close to that observed in November. The price dynamics from October to November can be found in the table compiled by TrendForce specialists.