According to Technewsspace , the oversupply of DRAM and NAND memory chips in recent times has been considered a real crisis for manufacturers, causing production profits to plummet and raising concerns about the possibility of bankruptcy for the entire industry. But now, tightening production activities to increase memory chip prices has helped companies like Samsung or Micron become more confident.
Companies like Micron and Samsung benefit from the rise in DRAM and NAND memory chips.
Data from analysts at DRAMeXchange shows that spot prices for DRAM and NAND memory chips have been rising in recent months. Chip prices fell in 2022 and early 2023, but bottomed out in July and August before rising steadily since then.
Although DRAM and NAND memory chip prices have not returned to their levels at the beginning of the year, they have increased significantly in recent months. For example, two 8 Gbit DDR4 memory chips are now 10% more expensive than they were in August. At the same time, the price of 512 Gbit NAND chips has nearly doubled since July, and 256 Gbit chips have increased 55% over the same period.
The reason why memory chip prices fell so low in 2022 was because the global economy was in recession after the Covid-19 pandemic. In that context, demand decreased due to consumers cutting costs, leading to a chip oversupply, causing prices to fall. Q3/2022 was considered the most difficult quarter, with global revenue from DRAM and NAND chip sales falling by 30% and 24%, respectively. This had serious consequences for manufacturers, in which Samsung's profits almost disappeared in Q1/2023, while Micron lost more than $2 billion.
These companies then significantly reduced memory chip production. Now, the move is starting to have a significant impact on supply as memory chip prices rise again.
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