TrendForce: The DRAM market is about to enter a new growth cycle

Storage manufacturers are ushering in the dawn of the market. After a long period of decline, both the DRAM and NAND Flash markets are showing signs of recovery. According to industry sources, this trend is attributed to the production reduction strategy adopted by major storage manufacturers and the gradual effect of market destocking. For the NAND Flash market, suppliers have been reducing losses since 2023 in order to curb losses. Production has been cut several times. Now, these measures are beginning to bear fruit, with NAND in August Flash chip contract prices rebounded and continued to rise in September. In addition, industry giant Samsung is also continuously reducing production, especially in products below 128 layers. Production dropped by an astonishing 50% in September. The move prompted other manufacturers to follow suit, further fueling the trend of higher prices.

Market experts are optimistic about the outlook for NAND Flash prices, predicting that they will continue to rise in the fourth quarter, with an estimated increase of about 3% to 8%, exceeding the initial 0% to 5% forecast. However, the recovery of the DRAM market is slightly later and is expected to start rising in the fourth quarter of this year, marking the beginning of a new growth cycle

At the same time, industry experts point out that the rise in DRAM prices is not only affected by production cuts The impact of factors such as inventory clearance and inventory clearance is also related to the artificial intelligence market. Artificial intelligence applications have driven increased demand for high-performance DRAM such as DDR5 in the data center market, which has also become one of the reasons for the early surge in DRAM prices.

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