Spot price hike, but PC and smartphone vendors adjusted down their demand

DRAM

Smartphone vendors reduced their component order to decrease the high inventory pressure.
The shipment is not well in China market, and the shipment declined year over year.

The DRAM trading activity improved after the channel UDIMM selling price increased.
DRAM suppliers’ quotation gets higher and the supply to the market is less than expected.
Both demand side and supply side are expecting ASP could increase further.
8G DDR4 x8 original brand component up low single-digit this month.
8G DDR4 x8 ETT/UTT grade component up high single-digit this month.

The spot price is closing to the PC contract price, it can help the supply side to have a better position to negotiate the second-quarter price.
Regarding the contract price in the second quarter, the consumer and graphic DRAM price might go up.
The PC contract price might be relatively flat with the first quarter and suppliers are trying to pull up the price.
However, the PC OEM’s demand is weaker than expected and the component shortage remained in the 1H22.
The overall PC build plan decreased, it will be a negative factor for DRAM ASP upturn in 2H22.

NAND

Kioxia contamination event changed the market atmosphere

Kioxia contamination event forced the Datacenter to upside the eSSD from other vendors since this quarter and the ASP hike.
In the channel market, the suppliers are offering price with more than high single-digit increasing.
Some of them offered 15%+ compared with the previous dealt price.
However, the Channel SSD demand is not well. It would not be easy to raise the channel SSD price so much at once.

Due to this event, the NAND solution contract price would increase in the second quarter.
The PC OEM’s demand is weaker than expected and the component shortage remained in the 1H22.
The overall PC build plan decreased and the weak smartphone demand would be negative factors to the NAND ASP upturn in 2H22.