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    DRAM Prices Continue to Fall in 2022

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    DRAM pricing continued its fall in the most recent quarter, more evidence that the pandemic-induced demand surge for electronics may now be in the rearview. Although that’s wonderful news for consumers, the ripple effects of restocked inventory levels will only make manufacturers’ problems worse.

    The average contract price of DRAM decreased by 10.6 percent in the second quarter compared to the same period a year earlier, according to TrendForce (paywalled, via The Wall Street Journal). The market research company claims that this is the first annual fall in two years. In the upcoming months, more decreases are anticipated.

    As consumer electronics demand increased in the fall of 2021, partly as a result of the work-from-home trend, DRAM pricing reached its high.

    DRAM
    credit: techspot

    Production slowdowns and semiconductor shortages only made the issue worse. Since then, the pendulum has swung the other way as concerns about inflation have caused demand for cellphones, PCs, and other electronics to decrease.

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    TrendForce predicts a drop in DRAM pricing of almost 10% quarter over quarter in the third quarter. Prices in the relatively stable server market might be significantly impacted, and if a sales war breaks out between competitors, prices could fall much more.

    In the DRAM sector, a domino effect is developing. Inventory levels are refilled as demand declines, which releases manufacturing capacity. This might affect business expansion plans that were made public during the epidemic to meet the pandemic’s record-breaking demand.

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