DRAM demand slowdowns could lead to decreased DRAM prices

DRAM demand slowdowns could lead to decreased DRAM prices

DRAM demand slowdowns could lead to decreased DRAM prices

According to a report from Nikkei, the demand for DRAM declined in April, creating an oversupply in the market in Japan and elsewhere. This dop in demand offers the potential for decreased DRAM pricing over the summer, which will hopefully return the price of consumer DRAM to normal levels after two years of price inflation. 

Today, DRAM demand comes primarily from the smartphone market, data centers and cryptocurrency miners, markets where DRAM supplies are often purchased in bulk. In recent months, cryptocurrency mining demand has weakened considerably, with slow growth in the smartphone market also contributing than lower than expected demand.    

Below is a comment from a representative of a Tokyo electronics parts retailer, who says that demand was strong from cryptocurrency mining operations in the past. 


   Orders for DRAMs fell noticeably in April, We previously received quite a lot of orders, even from companies with whom we did little business.

The drop in cryptocurrency hardware demand has also had a significant impact on graphics cards and the DRAM which is used in their creation, also contributing to lower DRAM demand in today’s market. 
 

DRAM demand slowdowns could lead to decreased DRAM prices

 
DRAM has been a huge growth factor for the semiconductor market in recent years, thanks to high demand from several expanding market. Now years of investment in increased DRAM production are taking its toll on the market, with lower than expected market growth having a knock on effect on DRAM pricing. 

It is likely that this recent shortfall will cause DRAM producers to adjust their manufacturing to best cater to these market conditions, which isn’t good news for consumers as DRAM manufacturers like to keep prices and their profit margins high. Regardless it seems likely that DRAM prices will decrease in the short term. 

We hope that DRAM pricing will decrease significantly before the year’s end, as DRAM has become ridiculously expensive, with the DRAM in new systems often costing as much or more than the user’s CPU, making the prospect of building a new gaming PC a lot less attractive. 

You can join the discussion on recent declines in DRAM demand on the OC3D Forums.