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DRAM and NAND Flash Prices Set to Grow Sharply in Q4

By Korbin Lan
Published: Sep 12,2016

TAIPEI, Taiwan - According to news from Taiwan's Economic Daily News, following the lead of DRAM and NAND Flash price growth for the Korean companies, Samsung and SK Hynix Semiconductor Inc.,, DRAM prices are expected to increase an additional 10% in the fourth quarter.

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Economic Daily News quoted memory distributors and stated that Samsung Note 7 battery malfunctions have led to increased sales pressures. Consequently, the Samsung Group has decided to increase DRAM and NAND sales prices in hopes of offsetting downward pressure on profits. Upon seeing Samsung's price increases, SK Hynix also seized the opportunity to raise prices.

On the other hand, the equipped DRAM and NAND capacity of recently released smart phones has also risen dramatically, which has caused a large increase in market demand and a natural increase in prices. An example of this is the the new iPhone 7 phone with an increased DRAM capacity from 3GB to 3GB, and non-Apple smart phone models will have an increase to 6GB of DRAM capacity.

In addition, the fourth quarter is the high season for retail in Europe, North America, and Asia which includes Thanksgiving, Christmas, and November 11 Singles' Day. All major technology companies will compete to increase their stocks, causing the production capacity of mobile DRAM and NAND as well as standard DRAM to tighten. This will also allow for more room for price growth.

(TR/ Phil Sweeney)

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