DRAM and NAND flash prices will see another price increase in 2024 after a two-year price decline. Effective supplier control over capacity utilization is a crucial factor.
In the current first quarter, there was an immediate price increase within the NAND and DRAM segments. A recent report from TrendForce shows a price increase of approximately 13 to 18 percent in DRAM contract prices and an 18 to 23 percent increase in NAND flash contract prices, both on a quarterly basis. This increase will continue this year.
Price increase after two years
After a two-year decline since 2021, prices rose again in the fourth quarter of 2023. TrendForce now predicts this increase will continue into 2024, although analysts say this will depend on suppliers continuing to have effective control over their capacity utilization.
TrendForce’s initial forecast is immediately confirmed, according to which a price increase of about 13 to 18 percent was observed in DRAM contract prices and an increase of 18 to 23 percent in NAND flash contract prices. Suppliers have begun increasing their utilization rates since the fourth quarter of 2023, and NAND flash buyers are expected to replenish their inventories in the first quarter of 2024. This will result in a moderate price increase of three to eight percent quarter-over-quarter in both DRAM and NAND flash contract prices.
Expectations 2024
For the third quarter of 2024, analysts expect that DRAM and NAND flash contract prices could continue to rise, resulting in a quarterly increase of eight to thirteen percent if suppliers keep their utilization rates below 100 percent.
The fourth quarter of 2024 will again be marked by price increases if suppliers maintain an effective production management strategy. Compared to the previous quarter, DRAM contract prices are expected to increase by approximately eight to thirteen percent. The increase in DRAM contract prices is mainly due to the increased share of DDR5 and HMB products. Analysts are forecasting an increase of zero to five percent for NAND flash products compared to the previous quarter.