dram supply | KitGuru https://www.kitguru.net KitGuru.net - Tech News | Hardware News | Hardware Reviews | IOS | Mobile | Gaming | Graphics Cards Sat, 03 Oct 2015 03:12:53 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.kitguru.net/wp-content/uploads/2021/06/cropped-KITGURU-Light-Background-SQUARE2-32x32.png dram supply | KitGuru https://www.kitguru.net 32 32 Prices of DDR3 and DDR4 continue to drop, set to decline further https://www.kitguru.net/components/memory/anton-shilov/prices-of-ddr3-and-ddr4-memory-continue-to-drop-expected-to-decline-further/ https://www.kitguru.net/components/memory/anton-shilov/prices-of-ddr3-and-ddr4-memory-continue-to-drop-expected-to-decline-further/#comments Fri, 02 Oct 2015 21:43:21 +0000 http://www.kitguru.net/?p=270425 Contract prices of dynamic random access memory (DRAM) modules dropped in August and September, despite peak season and anticipated stock-up demand on China, according to DRAMeXchange. Analysts believe that the launch of Microsoft Windows 10 this summer did not catalyse rise of demand, whereas the free Windows 10 upgrade program actually slowed sales of PCs …

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Contract prices of dynamic random access memory (DRAM) modules dropped in August and September, despite peak season and anticipated stock-up demand on China, according to DRAMeXchange. Analysts believe that the launch of Microsoft Windows 10 this summer did not catalyse rise of demand, whereas the free Windows 10 upgrade program actually slowed sales of PCs down. Moreover, prices of memory will continue to drop in the coming quarters.

Average contract price of one 4GB DDR3 SO-DIMM module in the second half of September declined to $18.5 (a drop of 2.63 per cent from the previous period), whereas average contract price of one 4GB DDR4 SO-DIMM decreased to $20 (a reduction of 4.76 per cent from the previous period), according to the world’s leading memory market tracker. In early July one 4GB DDR3 SO-DIMM cost $24.5, whereas in May it was sold for over $27.

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Prices of DRAM have been falling for a number of quarters and even in August and September they did not stop their declines because sales of PCs, smartphones and servers were weak.

“Notebook shipments in the third quarter fall short of what is expected for a traditional peak season mainly because Windows 10 with its free upgrade plan negatively impacted replaced sales of notebooks to some extent rather than driving the demand for these products,” said Avril Wu, assistant vice president at DRAMeXchange. “Furthermore, projected shipments of smartphones and servers have been marked down, and this has seriously eroded the margins of DRAM suppliers.”

While there are only three major DRAM manufacturers on the planet now – Samsung, SK Hynix and Micron – the competition remains heated, causing prices to fall. Moreover, as the industry transits to 20nm process technology for computer memory, it further increases the DRAM output, which negatively affects prices. Samsung Electronics is gearing up to start production of DRAM using 10nm-class (allegedly 18nm) process technology sometimes next year, which will put even more pressure on prices and competitors, reports DRAMeXchange.

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Slow demand for PCs, servers and other devices coupled with increasing DRAM output will continue to negatively impact prices of memory unless the global economy starts to recover, generating demand for products in general and memory in particular.

“If the global economy continues to stagnate, the end market will not generate the demand needed to effectively consume the new DRAM chips produced on the advanced processes,” said Mr. Wu. “Looking ahead to the first half of 2016, DRAMeXchange expects price decline in the DRAM chip market to become more severe than the current slide.”

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KitGuru Says: On the one hand, low prices are good for the buyer. On the other hand, problems of DRAM producers caused by low prices and miniscule profitability will inevitably have their negative effect on the whole industry in the future.

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Samsung reportedly cuts output of standard DRAM, prices may rise https://www.kitguru.net/components/memory/anton-shilov/samsung-reportedly-cuts-output-of-standard-dram-prices-may-increase/ https://www.kitguru.net/components/memory/anton-shilov/samsung-reportedly-cuts-output-of-standard-dram-prices-may-increase/#comments Tue, 04 Aug 2015 01:48:09 +0000 http://www.kitguru.net/?p=261939 Samsung Electronics has reportedly decided to reduce production of standard dynamic random access memory (DRAM), which could cause increase of DRAM prices in the coming months. The world’s No. 1 maker of computer memory will increase production of LPDDR in a bid to supply enough memory to Apple, which is gearing up to introduce new …

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Samsung Electronics has reportedly decided to reduce production of standard dynamic random access memory (DRAM), which could cause increase of DRAM prices in the coming months. The world’s No. 1 maker of computer memory will increase production of LPDDR in a bid to supply enough memory to Apple, which is gearing up to introduce new iPhone handsets.

Samsung will cut DRAM production by around 30 per cent, reports CTimes, citing Taiwanese Economic Daily News. The company plans to use manufacturing capacities currently utilized to make standard DRAM to produce mobile DRAM used in smartphones. Since Samsung’s offering of standard memory will drop, prices of such memory will likely increase in August or September.

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Apple’s next-generation iPhone will integrate 2GB of LPDDR4 memory instead of 1GB, which means that the company will have to purchase considerably more memory ICs [integrated circuits] than last year. In a bid to ensure that it has enough DRAM for its next smartphones, Apple will purchase DRAM not only from SK Hynix and Micron, but also from Samsung.

Demand for personal computers has been decreasing for several quarters, causing oversupply of DRAM. As a result, memory prices have been declining for months as well. Samsung’s decision will likely help DRAM prices to rebound.

Samsung did not comment on the news-story.

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KitGuru Says: Samsung’s decision to cut DRAM production is a good news for companies like Micron Technology and SK Hynix, who naturally suffer from low prices of DRAM.

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DRAM prices continue to drop despite of looming back-to-school season https://www.kitguru.net/components/memory/anton-shilov/dram-prices-continue-to-drop-despite-of-looming-back-to-school-season/ https://www.kitguru.net/components/memory/anton-shilov/dram-prices-continue-to-drop-despite-of-looming-back-to-school-season/#respond Thu, 09 Jul 2015 08:57:22 +0000 http://www.kitguru.net/?p=258211 Despite of the fact that personal computer makers are now buying dynamic random access memory in a bid to support demand during the back-to-school season, DRAM prices continue to drop. Not only weak demand impacts DRAM prices negatively. All memory makers are transiting to thinner manufacturing technologies and Samsung even introduces new capacities, which means …

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Despite of the fact that personal computer makers are now buying dynamic random access memory in a bid to support demand during the back-to-school season, DRAM prices continue to drop. Not only weak demand impacts DRAM prices negatively. All memory makers are transiting to thinner manufacturing technologies and Samsung even introduces new capacities, which means that there will be more DRAM available in the coming months.

“Downside risk to DRAM prices is mounting as inventory levels are rising amid weak set demand,” wrote Romit Shah, an analyst with Nomura Equity Research, in a note to clients, reports Tech Trader Daily.

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At press time one 4Gb 1600MHz DDR3 chip cost $2.558 on the spot market, down from $2.913 in late May, based on data from DRAMeXchange. Contract price of a 4Gb DDR3 memory chip is around $2.75, whereas a 4GB DDR3 SO-DIMM costs $24.5, around $3 lower than back in May. One 4Gb 2133MHz DDR4 chip costs approximately $3.589 on the spot market.

The situation remains complicated because all memory producers are transiting to 20nm fabrication process, which means that their per-chip costs are declining. Since Samsung Electronics is producing a huge part of its DRAM using 20nm manufacturing technology and has been decreasing prices to gain market share for some time now, other makers will follow with the same tactics, passing their savings to their customers and decreasing quotes.

Moreover, the situation will get even more complicated when Samsung and SK Hynix start to produce computer memory at their new facilities: the Line-17 fab in Hwaseong, South Korea, and the M14 fab at the company’s complex in Icheon, Gyeonggi Province, South Korea.

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Samsung’s Line-17 fab in Hwaseong, South Korea, is capable of producing logic, DRAM and NAND flash memory. The manufacturing facility is capable of 80 thousand of 300mm wafer starts per month. 60 thousand of wafers are expected to be allocated for computer memory. It is expected that by the end of the year the fab will produce around 40 thousand 300mm wafers per month.

SK Hynix’s M14 will start small-scale production in late Q3 or early Q4, 2015. It is expected that it will produce around 10 thousand of 300mm DRAM wafers per month initially.

Micron, with its strict cost control and profit-based strategy, does not have capacity expansion plans for 2015. However, the company is aggressively transitioning to 20nm process technology. Moroever, when two out of three DRAM producers manufacture more memory, prices will inevitably decline because of increased availability.

“In 2H 2015/1H 2016, we see risk that added DRAM capacity from Samsung (Line-17, greatest impact Q3 2015) and SK Hynix (M14) could push out the timeframe for pricing stability to transpire,” wrote Mr. Shah. “Furthermore, supply could grow on 20nm migrations from Micron and SK Hynix in 2H 2015, which also threatens recovery of pricing. Micron’s migration from 30nm to 20nm could yield an incremental ~80% bits/wafer.”

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KitGuru Says: It is obvious that with sales warning from AMD, rumours that Intel’s sales will meet only the low-end of its expectations and other reports about weak demand for personal computers in particular and consumer electronics in general mean bad news for DRAM makers. Moreover, the situation will get even tougher when Samsung starts to produce computer memory at its colossal manufacturing facility near Pyeongtaek, South Korea, in 2017.

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Samsung putting pressure on DRAM prices – analyst https://www.kitguru.net/components/memory/anton-shilov/samsung-putting-pressure-on-dram-prices-analyst/ https://www.kitguru.net/components/memory/anton-shilov/samsung-putting-pressure-on-dram-prices-analyst/#comments Sat, 13 Jun 2015 02:42:31 +0000 http://www.kitguru.net/?p=254405 Some market observers believe that prices of dynamic random access memory are about to increase, which will significantly improve profitability of DRAM producers. While this is essentially correct, there are reports that Samsung Electronics is dropping prices of memory in a bid to boost revenues, which could hurt other manufacturers' profit margins. “Two years of …

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Some market observers believe that prices of dynamic random access memory are about to increase, which will significantly improve profitability of DRAM producers. While this is essentially correct, there are reports that Samsung Electronics is dropping prices of memory in a bid to boost revenues, which could hurt other manufacturers' profit margins.

“Two years of firm DRAM prices appears reverting to a lower margin environment, still profitable but materially less so than once believed,” wrote Rick Whittington, an analyst with Drexel Hamilton, in a note to clients, reports Tech Trader Daily.

Samsung is the only producer of DRAM, which makes a substantial portion of its memory using 20nm fabrication technology. Two other major DRAM manufacturers – Micron and SK Hynix – will continue to produce the larger part of their DRAM chips this year using 25nm and 28nm processes. Thinner manufacturing technology allows to make memory ICs [integrated circuits] smaller and cheaper. As a result, Samsung can sell its memory at lower price points without affecting its gross margins.

“Predicated upon a view Samsung’s strategic interests bring willingness to accept lower memory margins, DRAM price drops are liable to continue,” wrote the market observer.

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Although there are only three major makers of DRAM left on the planet – Micron, Samsung and SK Hynix – and prices of memory remained more or less stable for several quarters, they have been decreasing in the recent months because of slow demand for PCs, tablets and other devices.

According to the analyst, Samsung is slashing prices not only on PC-oriented memory, but also on mobile LPDDR DRAM, which hurts other makers. For several years prices of LPDDR memory have been stable, which helped DRAM manufacturers to maintain their margins.

“PC DRAM price weakness has spread to mobile, reducing margins and earnings estimates as Samsung brings process cost drops to customers,” wrote Mr. Whittington.

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DRAMeXchange expects the overall value of the global DRAM market to reach $52.3 billion this year, a 13 per cent growth compared to 2014. Samsung has been the world’s biggest memory producer for many years now. The South Korean conglomerate is expected to further strengthen its positions in the DRAM market in the coming years after it completes its giant semiconductor fab near Pyeongtaek, South Korea, which is going to cost $23.6 billion in total.

Samsung did not comment on the news-story.

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KitGuru Says: If Samsung can easily shrink DRAM margins for other makers today, imagine, what it will be able to do once the colossal manufacturing facility begins operations in 2017.

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DRAM will remain in short supply this year – analyst https://www.kitguru.net/components/memory/anton-shilov/dram-will-remain-in-short-supply-this-year-analyst/ https://www.kitguru.net/components/memory/anton-shilov/dram-will-remain-in-short-supply-this-year-analyst/#comments Thu, 26 Feb 2015 00:00:12 +0000 http://www.kitguru.net/?p=237673 Even though Samsung Electronics plans to increase its manufacturing capacities for dynamic random access memory later this year, analysts believe that this will not create an oversupply on the DRAM market. The reasons for that are transitions to bigger memory dies as well as growing demand for higher memory capacities in general. This year all …

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Even though Samsung Electronics plans to increase its manufacturing capacities for dynamic random access memory later this year, analysts believe that this will not create an oversupply on the DRAM market. The reasons for that are transitions to bigger memory dies as well as growing demand for higher memory capacities in general.

This year all major manufacturers of smartphones and tablets, including Apple, Samsung Electronics, LG Electronics and other are expected to increase DRAM content per phone. PC manufacturers could also boost DRAM capacities inside their products as a part of preparations for Windows 10 arrival. In addition, the transition to DDR4 memory will be accompanied by transition to 8Gb DRAM ICs to a certain degree. Therefore, the demand for computer memory will increase significantly this year. Thus, even if some DRAM production capacities are added, it is unlikely that they will cause memory prices to drop.

“Actual situation is: DRAM is in shortage overall,” wrote Srini Sundararajan, an analyst with Summit Research, in a note to clients, reports Tech Trader Daily. “Samsung last year had just enough DRAM chips for itself let alone a dream of supplying to Apple and LG. Samsung is like a mouse in a flywheel running in circles to get back the same capacity this year […] This year they are adding capacity just to make up for loss of capacity from the increased die sizes and the more complicated shrink files. As such, capacity and wafer starts per month is likely to be unchanged.”

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Many believe that Apple’s forthcoming successor of its iPhone 6 (presumably, iPhone 6S) will integrate 2GB of LPDDR3 or LPDDR4 memory instead of 1GB today. This alone would significantly increase demand for computer memory.

Earlier this week it transpired that Apple decided to ink a DRAM supply contract with Samsung in a bid to get enough memory for its next iPhone. For a couple of years Apple has relied on Micron Technology and SK Hynix as their main DRAM suppliers.

According to DRAMeXchange, the world’s largest DRAM market tracker, Samsung, SK Hynix and Micron controlled over 93 per cent of the world’s DRAM supply last quarter. Therefore, these three companies also largely controlled memory prices.

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KitGuru Says: If additional capacities do not affect DRAM prices in the second half of the year, it makes sense to make memory upgrades now before demand for DRAM will increase in 2H 2015 ahead of the back-to-school and holiday seasons. Still, if you buy expensive enthusiast-class DRAM modules, keep in mind that their prices are relatively stable…

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