Memory Chip Prices to Rise 7-8% in 2025

In 2025, the three leading memory chip manufacturers are set to increase their prices by approximately 7%-8%, signaling a major shift in the market. This move follows a long period of declining prices for DRAM, which has resulted in losses for manufacturers. According to CINNO Research, the DRAM market has been in a recession due to the sustained price drops initiated by the original manufacturers. However, there is growing consensus within the industry that the prices can’t decrease any further.

The Shift in the DRAM Market: A Potential Recovery?

As we approach the traditional peak season of the third quarter, the three major DRAM manufacturers are attempting to boost contract prices for the upcoming quarter. Despite ongoing concerns over high inventory levels and a lack of significant recovery in end-user demand, this price increase suggests that the industry is beginning to bottom out. The current tug-of-war between manufacturers and customers may signal the early stages of a recovery for the DRAM market.

Micron’s latest financial report, covering the period from March to May, offers insight into the company’s outlook on memory prices and inventory management. The report has indicated a shift in the pricing cycle, with some analysts suggesting that the memory price decline has reached its lowest point. This aligns with reports from the market that memory manufacturers are planning to increase DRAM prices in the next quarter.

DRAM Prices Stabilize: What Does This Mean for the Industry?

During the 2023 618 promotion, Mobile China observed that the price of a 16GB (8GB×2) DDR4 3200 memory module for PCs dropped below 150 yuan, with brands like Jinbaida and ADATA offering competitive prices. However, prices in the market have now stabilized. The price of DRAM used in smartphones and PCs has ceased its downward spiral. This stabilization is largely due to memory manufacturers reducing production, leading to a reduction in market inventory.

As of May 2023, the wholesale price of DDR4 8GB memory stood at approximately US$1.48 per unit, maintaining the same level as April 2023. This ended a 12-month decline in prices. Similarly, the price of smaller 4GB memory modules remained steady at US$1.1 per unit, also unchanged from April 2023.

The Road Ahead: How Will Manufacturers and Consumers Adapt?

The decision by major memory chip manufacturers to increase prices by 7%-8% could have a significant impact on both consumers and businesses. For manufacturers, it signals the end of a prolonged price decline and a potential shift towards higher profits as the market stabilizes. For consumers, this price increase could mean higher costs for smartphones, PCs, and other memory-dependent devices.

As the memory chip industry moves towards a potential recovery, it’s essential to stay informed about market trends and adjust purchasing strategies accordingly. The rise in memory prices reflects the industry’s ongoing challenges and attempts to rebalance supply and demand.