DRAM
Contract price declined more than expected and China smartphone market remained weak
Both UDIMM and RDIMM contract price declined more than expected, the 1Q22 contract price would drop high single digit QoQ.
The suppliers are promoting the new generation of products to accelerate the process migration.
Based on the current situation, we may see slightly ASP declining in the second quarter.
In January, the smartphone shipment in China market is not well, it’s declined more than 10% compared with last year.
However, the Android smartphone vendors’ inventory is increasing, they have to promote aggressively to digest the inventory or they have to adjust their production plan.
In the Spot Market,
The trading activity increased, some customers are banking inventory due to the Chinese New Year.
8G DDR4 x8 original brand component up around low to mid single-digit in this month.
8G DDR4 x8 ETT/UTT grade component up high single-digit as well.
The consumer DRAM spot price follows the Jan. contract price, the 4G DDR3 x16 original component increased low to middle single digit.
However, the 4G DDR4 x16 original component is relatively stable since major suppliers are trying to encourage their customers to increase DDR4 adoption.
NAND
Raw NAND market was stable and the contract market kept downturn momentum
Due to the Samsung Xian event, the raw wafer supply to the market is less than expected. Some vendors felt the market atmosphere was getting better. Therefore, they don’t like to sell at lower price.
The broker increased their inventory as well. They liked to raise the SSD selling price, but it’s not easy due to the low component and QLC SSD placed pressure on TLC SSD.
In January, the smartphone shipment in China market is not well, it’s declined more than 10% compared with last year.
However, the Android smartphone vendors’ inventory is increasing, they have to promote aggressively to digest the inventory or they have to adjust their production plan.
Regarding the contract price, it declined middle to high single-digit in 1Q22 compared with 4Q21.
The enterprise SSD faced suppliers’ competition, the ASP declined more than expected.