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Memory Chip Price on Rapid Decline
DRAM Drop
Memory Chip Price on Rapid Decline
  • By Cho Jin-young
  • November 4, 2015, 05:00
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Samsung 20GB DDR3 DRAM chips.
Samsung 20GB DDR3 DRAM chips.

 

According to DRAMeXchange, the average contract price of DDR3 4 GB 512 MBx8 1333/1600 MHz memory fell 11.0 percent to US$1.78 between Oct. 14 and Oct. 30, and more than halved from US$3.78 in one year, led by a decline in the demand for DRAM for PCs and the subsequent supply glut. Likewise, the average contract price of 64 GB 8Gx8 MLC NAND Flash decreased by 26.7 percent to US$2.19 between Oct. 14 and Oct. 30, showing a 28.2 percent decline from a year ago.

It is predicted that the price of memory chips for servers as well as PCs will continue to drop for the time being. According to securities companies, the contract prices of PC DRAMs and those for servers decreased by about 10 percent and 4 percent month on month, respectively.

In the meantime, Intel is turning its manufacturing facilities in China into memory chip manufacturing bases, and the Tsinghua Unigroup acquired SanDisk so as to challenge Samsung Electronics and SK Hynix, which recorded a market share of 70 percent in the global DRAM market and 45 percent in the NAND Flash market at the end of the second quarter.

Under the circumstances, the two Korean companies are looking to deal with the situation by means of a product mix strategy focusing on high-end products. For example, Samsung Electronics is planning to increase the sales of high-capacity solid state drives (SSDs) along with non-memory products. SK Hynix is going to complete the development of the triple level cell-based 48-layer NAND Flash memory within this year while penetrating the SSD market.