20%! Micron announces DRAM price increase

On April 9, according to Taiwanese media reports, market sources revealed that Micron has proposed to most customers to increase their Q2 product quotations, with an increase of more than 20%!

Price negotiations are still ongoing.

In the early morning of April 3, a 7.3-magnitude earthquake and multiple larger aftershocks occurred in the waters of Hualien County, Taiwan Province, causing serious damage and a considerable impact on the semiconductor industry. For example, DRAM memory may face further price increases.

After the earthquake, Micron quickly suspended the announcement of DRAM product quotations for the second quarter, and SK Hynix and Samsung also followed suit. Micron also announced that it will further evaluate the production capacity and supply situation caused by the earthquake, and then discuss the supply situation with customers.

Industry insiders said that after such a strong earthquake, wafer factories will generally suspend or suspend at least some of their production lines, which will inevitably lead to supply shortages.

In fact, after experiencing sustained low prices in the past two years, DRAM memory manufacturers are deliberately controlling production capacity in the hope of recovering prices as soon as possible. The price increase trend was already obvious before the earthquake.

According to a report by TrendForce, the price of DRAM memory chips increased by up to 20% in the first quarter of this year, and will increase by another 3-8% in the second quarter. Now that the earthquake is an "opportunity", the original manufacturers will naturally not easily Let it go.

On the other hand, the current inventory levels of memory module manufacturers are generally low. With limited upstream production capacity, they will definitely increase procurement expenditures. Downstream customers such as server manufacturers will also take the opportunity to stock up, which will further drive up prices.

In addition, NAND flash memory prices continue to rise. In the first quarter, the overall price rose by 23-28%. In the second quarter, it is expected to rise by another 13-18%. Compared with memory, the price is even worse. This is also reflected in the terminal SSD market. In some cases, the price of NAND flash memory continues to rise. The product has even doubled in price.