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Weak Demand for DRAM Could Lead to Price Decreases in 2019

Accepted submission by takyon at 2019-01-04 17:04:48

Screeech... DRAM! Weak demand hits memory-makers as they slam on CAPEX brakes – analyst []

The three DRAM suppliers are scaling back production growth as memory demand falters with no sign of recovery. The DRAMeXchange [] research outfit has said annual DRAM capital expenditure (CAPEX) growth has gone negative for 2019 as Samsung, SK Hynix and Micron respond to weak seasonal demand in the first quarter and beyond. DRAM prices had risen for nine consecutive quarters until the last 2018 quarter, when they fell 10 per cent compared to the third quarter.

The demand outlook for PCs, servers, smartphones, and other end-consumer products is weak and the threat of a China-US trade war is not helping things. DRAMeXchange expects first quarter DRAM prices to show a 15 per cent fall, and see 10 per cent in the next, and then 5 per cent in both the third and fourth quarters, unless something positive happens, like China and the USA becoming best buddies.

The three DRAM suppliers are locked into some production output growth this year but have scaled back their CAPEX plans and reduced growth expectations as a result of the price falls.

Related: Tsinghua to Build $30 Billion DRAM/NAND Fabrication Plant in Nanjing, China []
IC Insights Predicts Additional 40% Increase in DRAM Prices []
Samsung Preparing to Build Another Memory Fab Near Pyeongtaek for $27.8 Billion []
U.S. Indicts Chinese DRAM Maker JHICC for Alleged Industrial Espionage []

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