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(LEAD) DRAM prices continue to fall on supply glut: data

All Headlines 10:27 April 24, 2019

(ATTN: UPDATES with more details in paras 7-10; ADDS image)
By Kim Eun-jung

SEOUL, April 24 (Yonhap) -- Prices of DRAM products for computers continued to slide this year due to slow demand and a high level of inventory, a market tracker said Wednesday.

The average price of 8-gigabit DDR4 DRAM, a benchmark price for the category, stood at $4.11 as of Tuesday, falling 35.2 percent this year, according to DRAMeXchange, a division of TrendForce.

The latest price is more than half down from a historic high of $9.69 in December 2017.

TrendForce predicted prices of mobile DRAM products would fall 10-15 percent and DRAMs for servers decrease 20 percent in the second quarter.

"The accelerating drop in prices did not stimulate a recovery in demand, and transactions have still been few," TrendForce said in a report. "DRAM average sales price (ASP) is predicted to continue falling well into the third quarter as inventories clearouts have yet to be completed."

TrendForce expected the average sales price of DRAMs to decrease 20 percent in the second quarter but price drops to slow in the latter half of the year.

(LEAD) DRAM prices continue to fall on supply glut: data - 1

The price slump of the memory chips are expected to weigh down first-quarter earnings of South Korean chipmakers, a major pillar of exports in Asia's fourth-largest economy.

Samsung Electronics Co., the world's top memory chip maker, flagged worse-than-expected earnings in the first three months of the year, citing sluggish memory chip and display sales.

Its smaller rival SK hynix Inc. is also expected to have posted weak quarterly earnings as its major source of revenues are from DRAM and NAND flash chips.

In light of the recent slump in the main export sector, the government is set to announce comprehensive measures to develop the semiconductor ecosystem with increased support for the foundry and non-memory segment as the new growth drivers.


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