According to TrendForce, DRAM shortage will soon be over
A modest increase in production during the last two years and the problems associated with the transition to a new phase of technological standards, led to the fact that the increase in the supply of DRAM has lagged behind market needs. Contract prices for these products began to grow in the second half of 2017, pushed by the seasonal rise in demand. Since then, prices for DRAM continue to grow.
The price increase allowed to the leading DRAM manufacturers to improve financial performance. So, Samsung being the world’s largest DRAM supplier, has increased its gross profit to 59%. Indicators SK Hynix and Micron is equal to 54% and 44% respectively.
However, the situation may change as Samsung is considering expanding production. The South Korean manufacturer is planning to increase the production of DRAM from the current figure of 390 000 wafers per month to nearly 500,000 wafers per month by the end of 2018.
According to analysts TrendForce, it will lead to increased competition and to raise the threshold of market entry. With the shortage of DRAM will be finished earlier than originally expected.