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【Market News】DRAM Spot Prices Expected to Continue Rising.


To whom it may concern:   

Dwindling foundry capacity compounded with increases in related packaging and testing costs have caused a fourth quarter rise in DRAM product spot prices. 

Analogously, an American memory manufacturer, Micron DRAM, suffered an accident that resulted in a significant power outage at their factory in Taoyuan, Taiwan. As their factory accounted for 8% of the global DRAM production, this accident has reduced global supplies. Micron plans to resume production in a few days, but the accident has diminished already limited DRAM supplies and modules, and quotations have been immediately suspended. NAND Flash supplies have also been affected with quotations suspended.

Simultaneously, DDR3 production is being phased out in favor of CMOS. Hynix, a South Korean memory supplier, has similarly phased out DDR3 256X8 production to accommodate manufacturing capacity limitations. In sum, the production capacity of niche DRAM solutions — such as DDR3, DDR2, and DDR1 — is tightening. Memory module foundries have increased their quotations starting from last week. 

Advantech expects DRAM production capacity to be tighter than NAND flash in 2021, with niche DRAM suffering the majority of the immediate consequences.