Low Demand Triggers a Price Decline in DDR5 & DDR4 DRAM

DRAM, including DDR5 and DDR4 memory, is witnessing production cuts from industry giants such as Micron and SK Hynix, according to TrendForce. The average selling price (ASP) of DRAM declined as much as 20% in the first quarter of the year, but is expected to drop by 10-15% in the second quarter. With price decreases comes uncertainty, since it is unknown if demand will return to its proper place within the second quarter or continue to decline. Manufacturers have forced to cut their ASPs in order to fulfill the demands of their consumers and clients, yet industry data reveals that supplier inventory levels are at an all-time high. Prices will not return to normal unless output is reduced. In the graph below, TrendForce has broken out the pricing forecasts for DRAM products for the first and second quarters of 2023. [caption id="attachment_131914" align="aligncenter" width="1200"] Image Source: TrendForce[/caption] The future seems dismal, with demand falling across the board, not just in the DRAM sector. It will be fascinating to observe how these figures change as we approach 2024.