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Despite Taiwan Earthquake, DRAM Pricing & Supply Seems Largely Unstirred

After Taiwan’s Recent Earthquake, we investigate the latest recovery progress of major foundries.

Last week, 2nd April UTC, Taiwan experienced a severe magnitude 7.2 earthquake originating 18Km South of Hualein City – the strongest earthquake in Taiwan since 1999. Subsequently, reports of memory makers refusing to publish contract DRAM prices a few days ago raised concern over DRAM price hikes. Said price hikes may still take place however, new reports have confirmed that the earthquakes impact on DRAM was largely corrected for within the week. The overall impact on DRAM production in Q2 seems as low as 1%.

In the reports, a total of 5 DRAM fabrication plants belonging to 4 suppliers were evaluated. Included are two of Microns fabs, and one of each from Nanya, Winbond and PSMC. Below is one of the original graphics, going over the data in more depth. Overall, things seem optimistic in terms of long-term production capacity.

Facing upcoming price hikes to HDDs and NAND flash (at least as per Western Digital’s reports), news that DRAM manufactures have largely recovered from the earthquake should be a cause for optimism. With reports circulating of a 1% impact on overall DRAM production, is there anything to worry about?

Contract prices are yet to be released and restarted by most manufactures, except SK Hynix and their mobile DRAM. The proposed price adjustments seem what has been called “moderate”, estimates of Q2 DRAM price increases range from 3-8%.

Until official figures are released, we will largely be in the dark concerning these possible price hikes. Fortunately, DRAM production is back in full force, fingers crossed, any price hikes should normalize quickly.

Featured Image by freepik

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