Friday, 23 August 2013

DRAM Prices Set to Rise in 2013

According to semiconductor market research company, IC Insights, DRAM average selling prices have increased each month throughout 2013. The price jumped an estimated 42% in quarter 2 2013, compared to the same period in 2012 following a 22% rise in quarter 1 2013.

IC Insights forecast that the DRAM average selling price will grow to $2.53 by quarter 3 which will be 50% greater than quarter 3 2012. It is then expected to decrease slightly in quarter 4 to $2.52. Please see image below.

IC Insights believe that one contributing factor to the increase in DRAM price is that fewer suppliers are participating in the DRAM market today compared to 2010. Also DRAM capital spending as a percent of sales has declined from 31% in 2011, to 19% in 2012 and is forecast to be only 12% in 2013.

With a reduced amount of new capacity being added, the supply-demand balance is now favouring DRAM suppliers, as demand is beginning to overtake supply, resulting in the increase in price.

Also with the computer industry moving more towards smart phone and tablets over the traditional notebook and desktop, most suppliers have scaled back their output of lower priced PC DRAM and transitioned to higher priced mobile DRAM.

To read the article in full or to download the report, please visit the IC Insights website.

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