DRAM prices look set to increase until at least H2 2017

The DRAM market has seen an upward swing in pricing over recent times and that momentum is set to continue until at least the summer, according to the boss of DRAM chipmaker Nanya Technology.

Speaking at a meeting attended by DigiTimes reporters, Nanya Technology president Pei-Ing Lee, said that DRAM price rally will continue though the second quarter, with prices likely to stabilise in the third quarter of 2017.

This is all down to supply and demand according to Lee. He went on to say that supply is going to "continue to fall slightly short of demand," according to the report.

The second half of 2017 is highly dependent on the capital expenditure plans of major DRAM manufacturers put into action in the preceding period. Speaking about the firm’s plans, company president Lee said that Nanya will move a newer 20nm process to risk production at the end of the first quarter, and that chipmaking on this process will be scaled up as 2017 progresses.

As its new tech comes online Lee said that Nanya will reduce its 30nm process output, and that by the first quarter of 2018 its 20nm and 30nm production processes will both be going through 30,000 12-inch wafers.

Before the publication of its DRAM market outlook, Nanya published its fourth quarter 2016 results. It announced a net profits surge, making NT$20.06 billion (US$639.5 million) in the three months ending 31st Dec 2016.

What this all means is that it is a good time to be a DRAM producer. Demand is high, meaning that prices are also high. On the reverse from the perspective of consumers, they will be hoping that the profits in DRAM will stoke up competition and bring prices back down.

G.Skill Ripjaws V Series 16GB (2 x 8GB) DDR4-2400 Memory – price history via PCPartPicker.

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