In February this year, DRAM and NAND chip prices continued to rise simultaneously: DRAM prices once again hit a record high, with the average price in February crossing the $13 mark for the first time; at the same time, NAND prices also soared by more than 33%, and are expected to continue to rise in the future.

Benefiting from the artificial intelligence boom, the world's major chip manufacturers have concentrated their production capacity on high-value products, resulting in a continued shortage in the supply of general storage products. However, the price outlook for DRAM and NAND is very different. DRAM prices are expected to reach a short-term peak soon and the increase will slow down; while NAND prices are expected to continue rising and are expected to continue a trend favorable to sellers in the second half of this year.

DRAM spot prices may stabilize

According to the latest news from market research organization DRAMeXchange, the average fixed transaction price of general PC DRAM products (DDR4 8Gb 1Gx8) in February was US$13, an increase of 13.04% from US$11.50 last month.

General-purpose DRAM prices have increased for 11 consecutive months since April last year, with the average price in February hitting the highest level since the survey began in June 2016.

TrendForce, the parent company of DRAMeXchange, announced that in the first quarter of this year, PC DRAM prices increased by 110% to 115% compared with the previous quarter. This increase far exceeded the 38% to 43% increase recorded in the fourth quarter of last year.

TrendForce analysis said: "After several quarters of continuous rise, the current spot price has reached a balance point that is satisfactory to both parties. DRAM prices are likely to stabilize at the current level, and the increase is expected to slow down in the future."

"Most DRAM suppliers and PC manufacturers have completed first-quarter price negotiations in February." It added, "As most contracts have been finalized, price levels in March are expected to be the same as February."

NAND prices expected to rise steadily

NAND prices also hit record highs. This month, the average fixed transaction price of general-purpose NAND flash memory products (128Gb 16Gx8 MLC) for memory cards and USB is US$12.67, an increase of 33.91% from US$9.46 last month. This marks the 14th consecutive month of NAND price increases.

Supply shortages in mature process products such as SLC and MLC are intensifying as suppliers focus their production capacity on high-volume 3D NAND products.

TrendForce said: "As demand for artificial intelligence edge computing and automotive applications continues to grow, the market supply and demand imbalance is likely to continue into the second half of this year." It added, "NAND flash memory prices are expected to remain stable in the first half of this year."