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PC DRAM Price Falling Again
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PC DRAM Price Falling Again
  • By Michael Herh
  • February 21, 2020, 10:20
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The PC DRAM price decline is likely to affect the mobile and server DRAM segments.
The PC DRAM price decline is likely to affect the mobile and server DRAM segments.

Market research firm DRAMeXchange said on Feb. 20 that the PC DRAM (DDR4 8Gb) spot price reached 3.31 percent, down 1.2 percent from a month ago.

The spot price has continued to fall from US$3.48 since Feb. 4. It reached US$3.41 on Feb. 7, showed little change for 10 days, and then fell to US$3.39 on Feb. 17 before falling to US$3.38, US$3.36 and US$3.31 on the following days.

Last month, the contract price rebounded, by 1.07 percent, in 13 months. However, the contract price will fall again if the spot price continues to move in that direction. The PC DRAM segment accounts for 20 percent of the global DRAM market as a whole and the price decline is likely to affect the mobile and server DRAM segments representing 40 percent and more than 30 percent, respectively.

The price decline is bad news for Samsung Electronics and SK Hynix, which produce more than 80 percent of DRAM chips The companies are forecasting that the global DRAM market will grow approximately 20 percent this year in terms of shipments, and yet the spread of Covid-19 in China, which accounts for more than half of the global semiconductor demand, is likely to change their forecasts.