Datacenter demand pushing up DRAM prices even more

Industry sources told DigiTimes that pricing of DRAM is expected to rise 5-10 percent this quarter due to strong demand from not only the smartphone but also the datacenter market:

The sources said that the tight supply of memory chips for servers at datacenters actively under installation by US web giants since the second half of 2017 has eased slightly in the first quarter of 2018, but price quotes have lingered at high levels.

Aided by stable shipments to the US in the first quarter of the year, the average unit spot price for DDR4 chips in January inched up 1.1% on month to US$5 in February, with the average price hike estimated at 3-5% for the first quarter. As to DDR3 chips, prices already stabilized in February and are expected to stay flat in March.

Additional production capacity for both DRAM and NAND memory is expected to come online in the second half of this year. Samsung, SK Hynix and Micron are all three expanding capacity to meet demand.