DRAM price correction to come, warns Nanya Technologies • The Register


The world’s fourth largest memory maker, Taiwanese company Nanya Technology Corporation, has predicted a price “correction” at the end of 2021.

Speaking when announcing the company’s third quarter results last Friday, Nanya chairman Dr Pei-Ing Lee said sales from the consumer electronics, server and smartphone sectors remained dazzling.

But demand is weak due to component shortages, exacerbated by COVID-linked electronics factory disruptions in Southeast Asia.

High inflation and geopolitical tensions haven’t helped matters either, slowing the global economy.

“We expect from the DRAM market [to] enter a minor short-term correction in the fourth quarter of 21, ”concluded Lee. Taiwanese company Nanya Technology is the fourth largest DRAM company and is consistently ranked by industry analysts behind major market players Samsung, SK hynix, and Micron.

If DRAM prices drop, that’s good news for those still in the server market – memory may be the most expensive component in big box. It also has the potential to make next year’s smartphone models a bit cheaper, or generous in memory.

The news is less good for investors, as Samsung reported record group revenues this year due to pricing and memory demand, despite challenges like the February 2021 shutdown of its Austin smelter.

Lee’s statement reflects DRAMeXchange and Gartner’s analysis. Last month, a memo released by Gartner predicted a “significant reduction in the price” of memory due to oversupply and advised hardware manufacturers to design products with more memory or improve the quality of memory. ‘other components if they wish to continue charging their new normal prices. ®


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