Server DRAM memory ASPs are expected to rise more than 10% sequentially in the second quarter of 2017, and will continue their growth in the third quarter due to persistent tightness in supply, according to DRAMeXchange.
Demand has outpaced supply in the server DRAM market since the second half of 2016, as a result of product mix changes made by the chip suppliers, said DRAMeXchange.
On the demand side, server makers have stepped up their pace of purchases prompting the memory prices to rise further, DRAMeXchange indicated.
In the first quarter of 2017, server DRAM makers were already unable to fulfill all their customer demand, DRAMeXchange said. The chip suppliers managed to fulfill about 80% of the total server DRAM demand from their long-term contract partners in the first quarter, and only 60% of the demand from China- and Taiwan-based system ODMs.
The supply of server DRAM chips is likely to remain tight in the third quarter, which will continue to push up the memory prices, according to DRAMeXchange.