Global DRAM prices rebound as virus-hit assembly lines resume operations

SEOUL, May 4 (Yonhap) -- Prices for dynamic random-access memory (DRAM) chips rebounded on-month in April, as assembly lines in China have resumed their operations after temporarily shutting down amid the new coronavirus pandemic, data showed Monday.

The spot price of 8-gigabit DDR4 DRAM, a benchmark price for the category, reached US$3.29 as of Thursday, according to data from market tracker DRAMeXchange. It marked an 11.9 percent rise from $2.94 on March 31.

The market tracker attributed the increase to the improved factory operational rate in China, the epicenter of the global COVID-19 pandemic, which recently started to normalize its business activities.

The overall supply of server DRAM chips by South Korean producers, namely Samsung Electronics Co. and SK hynix Inc., will increase throughout the third quarter, which could potentially curb price gains down the road, it added.

Market watchers said the average sales price of DRAMs will further lose ground later this year due to falling global demand for mobile devices.

In a separate report, TrendForce, which has DRAMeXchange under its wing, said global smartphone sales are anticipated to dip 11.3 percent on-year to reach 1.24 billion units this year.

"The global spread of COVID-19 in 2020 has brought about the greatest magnitude of declines in the smartphone market in recent years," TrendForce said.
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