TrendForce expects DRAM prices to grow 23-28% this year

TrendForce analysts say negotiations between DRAM vendors and major PC makers regarding contract prices for memory in the second quarter entered a critical phase.

While negotiations are still pending, current transaction data suggests that the average selling price of 1GB DDR4-2666 chips (with an 8-bit logical organization) has already increased by almost 25% from the previous quarter. This is above the TrendForce forecast, which said prices would rise “nearly 20%.”

Prices for other DRAM categories will also rise in the second quarter, including mobile, graphics, and server memory. Based on the new data, TrendForce has revised its forecast for overall DRAM price growth compared to the first quarter from 13-18% to 18-23%.

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They make a caveat that the actual price increases for different categories of DRAM will depend on the allocation of production capacity for products of a particular category.

Especially the price of DRAM for PCs will rise in price – by 23-28%. This is due to the increase in the number of notebooks produced. Contract prices for server DRAM will rise by 20-25%.

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