Memory chip costs anticipated to stay in freefall by means of the primary half of 2023
merely put: Memory chip costs are anticipated to proceed to say no within the first half of 2023 and even longer. Market intelligence supplier TrendForce informed the Wall Street Journal that DRAM costs doubtless fell 20 % within the first quarter and 11 % within the second quarter. Meanwhile, NAND flash costs are anticipated to say no by 10% within the first quarter and three% within the second quarter.
Over the previous three-month interval (October-December 2022), DRAM and NAND flash costs have fallen by 23% and 28%, respectively, in response to TrendForce.
Memory chip costs peaked throughout Covid however began to fall again in late 2021 as a result of robust demand for shopper electronics. Rising rates of interest mixed with geopolitical uncertainty from the Russia-Ukraine struggle and sporadic Covid lockdowns in China will solely make issues worse in 2022.
The analysis agency believes that within the coming months, excessive rates of interest, rising inflation and a weak international financial system will proceed to have an effect on shopper and enterprise spending on units akin to smartphones, PCs and servers, all of which use each sorts of Memory. The state of affairs might put extra strain on a tech trade already fighting cutbacks and layoffs.
Earlier this month, Samsung warned that working revenue within the October-December quarter was anticipated to drop 69% in contrast with a yr earlier. Analysts at FactSet anticipate reminiscence chip maker SK Hynix to report a fourth-quarter lack of about $661 million later this week. Intel’s income fell 32% year-over-year in its most up-to-date quarter.
How lengthy the downturn lasts relies upon largely on how rapidly shopper spending picks up. Demand for smartphones was weak in the course of the holidays, however Samsung will doubtless begin promoting them in 2023, with a brand new wave anticipated to be introduced at its Unpacked occasion on Feb. 1. Nor has anybody confirmed plans to deliver its subsequent flagship to the US later this yr. Apple’s iPhone 15 will nearly actually be launched in September this yr.