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DRAMeXchange, tech market intelligence firm TrendForce's memeory and storage branch, today added yet another entry to the list of industries expected to be negatively affected by tension between the U.S. and China. The research firm announced that it expects Huawei's blacklisting by the U.S. government to contribute to a DRAM price drop of up to 15% in the third quarter.
"As ripples from the U.S. ban continue to spread, Huawei's shipments of smartphone and server products are feared to face heavy obstacles for the next two to three quarters , impacting peak-season-demand for DRAM products 2H and the time of price precipitation," DRAMeXchange said.
[...] In its report, DRAMeXchange noted its earlier prediction that the likeliness of DRAM prices falling under suppliers' "fully-loaded costs" would be "extremely slim under the premises that the competition only consisted of three giants, and that DRAM production processes were nearing physical limits." The analyst is now changing its stance.
"Yet, a heated U.S.-China trade war may send demand in the second half of this year into quick-freeze, with the increasingly looming uncertainty compelling datacenters to make reductions to capex. Fragile DRAM suppliers may have to admit current inventory casualties on the books by the end of this year, and officially modify their financial statements to report: 'Loss,'" DRAMeXchange said.
Source: https://www.tomshardware.com/news/dram-memory-market-huawei-impact-us-china,39588.html
(Score: 2) by stretch611 on Monday June 10 2019, @10:53AM (6 children)
While their may be a 15% drop in prices for DRAM, the 25% additional tariff will still cause it to go up in price for the consumer.
Now with 5 covid vaccine shots/boosters altering my DNA :P
(Score: 3, Touché) by takyon on Monday June 10 2019, @10:55AM (4 children)
Not if you get your system from Taiwan.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 3, Funny) by stretch611 on Monday June 10 2019, @11:06AM (1 child)
why are you always adding logic to my snarky comments? =)
Now with 5 covid vaccine shots/boosters altering my DNA :P
(Score: 2) by istartedi on Monday June 10 2019, @05:02PM
With all that cheap memory, there's plenty of room for additional logic and snarky comments.
Appended to the end of comments you post. Max: 120 chars.
(Score: 1, Informative) by Anonymous Coward on Monday June 10 2019, @05:08PM (1 child)
Wikipedia [wikipedia.org] only lists three current DRAM manufacturers: Micron (US), Samsung (SK) and Hynix (SK).
(Score: 2) by takyon on Monday June 10 2019, @05:26PM
Most consumers buy RAM already installed in a system. ASUS, Acer, TSMC, etc. are based in Taiwan. U.S./South Korea business is obviously not affected* by dueling tariffs. etc. etc. etc.
*Not in the same way as U.S./China business.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2, Insightful) by Anonymous Coward on Monday June 10 2019, @11:51AM
That isn't how it works. The Chinese company just needs to sell to a middleman in another country who then sells to the US. That 15% tariff is an upper bound on the price increase you will see.
People need to stop reading the fake news. These journalists have zero clue about how anything works and are just paid to manipulate you so someone can make money from your bad decisions.
Look at how the media has given Trump the power to pump the stock market at any moment by saying "trade war over", etc. They repeat BS to you over and over like "tariffs will make prices go up x amount which is bad for stocks", "stocks are lower than they would be if not for Trump", etc.
https://en.m.wikipedia.org/wiki/Gell-Mann_amnesia_effect [wikipedia.org]