DRAM contract market prices are likely to stop falling and begin to stabilize in September, according to Simon Chen, chairman for memory module maker Adata Technology.
As for NAND flash, contract prices are also set to stabilize later in the second half of 2019 and will see a gradual rise through the last quarter of the year, said Chen.
Nevertheless, the anticipated rebound in NAND flash contract prices during the latter part of 2019 will be greater than that in DRAM contract prices, Chen indicated. NAND flash prices, which are around 30% below cash costs at many suppliers, will be rising to approach their cash-cost levels, Chen continued.
DRAM spot prices started to fall recently after a robust 40% rally, Chen suggested. However, with demand for handset and datacenter applications picking up, DRAM contract prices are expected to show an upward trend in the third quarter, Chen noted.
In addition, Chen said that he believes Adata's revenues already hit bottom for 2019 in the second quarter. The memory module maker expects its sales to pick up in the third quarter.
According to DRAMeXchange, the 2018 market for DRAM modules surged 41% on year to US$16.6 billion, thanks to an over 10% rise in ASPs along with shipment growth. Kingston Technology remained the largest DRAM module company with a 72.17% market share in 2018, while Adata slid to fourth place from second in 2017, with market share dropping nearly 1pp on year to 3.89%.
Adata stayed in the red in 2018, but returned to profitability in the first quarter of 2019. The company managed to generate net income in the second quarter, thanks to non-operating profits.
Article translated by Jessie Shen
