Memory market remained sluggish and the Suppliers promoted aggressively in this quarter end

DRAM

DRAM dealing price declined more than expected

This month is the quarter end and the suppliers are trying to close the deal with their customers.
RDIMM contract pricing offering reduced significantly, it would be difficult for supply side and demand side to close the deal.
However, the final dealt price could be lower than expected.
The consumer DRAM market is poor, the official pull in price declined a lot this moth.
In 4Q22, the contract price would decline at similar level or more compared with 3Q22.

However, the major suppliers are cutting the capex and decreasing the production growth next year in order to reduce the inventory pressure.
It’s a positive sign for the market.

This month, in the Channel market, the DRAM trading price dropped,

16G DDR4 x8 original brand component declined high single digit %.
16 DDR4 x8 ETT/UTT grade component declined ~6%.
8G DDR4 x8 original brand component declined low single digit %..
8G DDR4 x8 ETT/UTT grade component declined low single digit %.
4G DDR3 x16 original brand component declined low single digit %.
4G DDR3 x16 ETT/UTT grade component declined high single digit %.

NAND

In this month, NAND products price declined further more.
The weak demand forced the suppliers to promote aggressively to stimulate the pull in demand.
For the client PC OEMs SSD pull in price this month, it is more than 15%+ price deducted compared with original 3Q22 price.

Consumer eMMC price declined a lot, expecting another 15%+ ASP deducting in 4Q22 as well.

Regarding the raw Nand pricing, the price down more than expected as certain vendor made a meaningful volume deal.

The suppliers are slowing down the migration in order to save the capex. Some new product developing would be cancelled and support by existing product line.
Micron and Kioxia cuts their production to ease their own inventory pressure.
However, the overall NAND industrial inventory is high, and the inventory level might not able to be lower next year if there is only two companies cutting the capacity.