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MrPlow writes:

Submitted via IRC for SoyCow4463

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

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