The three major memory chip manufacturers have announced that they will increase prices by about 7%-8%!

In a recent development, the three major memory chip manufacturers have announced plans to raise their prices by approximately 7%-8%. This move comes as a response to a prolonged period of declining DRAM prices, which have caused the memory industry to experience losses. According to research from CINNO Research, memory DRAM prices have been in a recession for an extended period, but there is growing consensus that the price decline has now reached its bottom.

Memory Price Outlook and Recovery

As the industry enters its traditional peak season in the third quarter, the three leading OEMs are attempting to increase DRAM contract prices for the next quarter. Despite lingering concerns about inventory levels and slow recovery in terminal demand, this price adjustment signals that the industry has reached a turning point. Experts believe that the worst is over, and a recovery is on the horizon.

Not long ago, memory chip manufacturers like Micron released their financial data for the March to May period. The report provided key insights into the memory chip sector, particularly regarding price trends and inventory management. Analysts suggest that the memory decline cycle has finally hit its bottom, and there’s speculation that the original manufacturers are planning to increase DRAM prices in the upcoming quarter.

Price Increase and Market Trends

Insiders in the industry have confirmed that the top three memory chip manufacturers are looking to hike contract prices by 7%-8%. However, this adjustment is still subject to negotiation and market conditions, as some manufacturers face different challenges. For instance, downstream companies with high inventory levels may hesitate to accept the price increase, leaving the market in a tug-of-war situation.

During the 618 promotion earlier this year, Mobile China observed that the price of a 16GB DDR4 3200 memory stick (8GB×2) for PCs dropped below 150 yuan, with popular brands like Jinbaida and ADATA offering competitive prices. However, the market has since stabilized, as DRAM prices for smartphones and PCs have stopped declining. This stabilization is attributed to reduced production by memory manufacturers, which has led to a decrease in market inventory.

Current Memory Prices and Trends

In May 2023, the wholesale price of an 8GB DDR4 memory module stood at approximately $1.48, maintaining the same level as in April 2023. This marks the end of a 12-month price decline. Similarly, the price of smaller 4GB DDR4 modules remained steady at around $1.1 per unit, also unchanged from April 2023.

In conclusion, the memory chip industry appears to have turned a corner. While challenges remain, the price hikes from major memory chip manufacturers and the stabilization of DRAM prices suggest that the market is poised for recovery. For more updates on technology and industry news, you can visit TinyDeals.