DRAM prices to fall 13-18% in 4Q22, says TrendForce

Jessie Shen, DIGITIMES Asia, Taipei 0


DRAM memory prices are expected to fall 13-18% sequentially in the fourth quarter of 2022, after registering a 10-15% decline in the third quarter, according to TrendForce.

DRAM suppliers are under increasing pressure to offload inventory as buyers continue slowing down their chip purchases, said TrendForce. Besides, DRAM suppliers remain aggressive in expanding their respective market share, TrendForce indicated.

PC OEMs will remain focused on inventory de-stocking in the fourth quarter, when PC DRAM prices are poised to drop 10-15% sequentially, TrendForce noted. Prices for DDR4 memory will decrease another 13-18% sequentially in the fourth quarter, while drops in DDR5 prices will narrow to 13-18% from 16-20% in the third quarter.

Server DRAM prices are expected to fall 13-18% sequentially in the fourth quarter after registering a 10-15% drop in the third, TrendForce indicated. "Client server DRAM inventory will be at a high watermark for approximately 9-12 weeks," said the memory price tracker. "At the same time, as OEMs and Chinese cloud service providers have slowed their purchasing momentum, manufacturers have shifted focus to negotiating pricing and volume with North American cloud service providers. However, output cannot be effectively digested, compounding manufacturers' inventory pressure."

In terms of mobile DRAM, brand smartphone vendors continue to adjust inventory. "Inventory levels are expected to be maintained at 7-9 weeks by the end of 3Q22 and variables remain in the seller's market," said TrendForce. Mobile DRAM prices are expected to decrease 13-18% sequentially in the fourth quarter after falling 10-15% in the third.

Prices for graphics DRAM memory will register another 10-15% sequential decline in the fourth quarter of 2022, while prices for consumer DRAM memory will be down 10-15% compared with a 13-18% drop in the prior quarter, according to TrendForce.