Conservative market perspective remained

The preparation order for the smartphone supply chain has significantly decreased.
The China smartphone shipment might be less than expected, and the worldwide demand for flagship smartphone appears weaker than previous anticipation.
Major flagship smartphone vendors have decreased their production plans.
The smartphone preparation shifted from flagship model to mid-range and low-end.

DRAM

The demand hasn’t improved this month.

The consumer DRAM demand soft this month, the ASP reduced further.
The price RDIMM has continued to decline in 1Q23, the declining ratio would be higher than previous prediction.
The second quarter DRAM contract price might decline even further compared to last month projection.
The demand side has requested significant ASP dropping in the second quarter, which is much lower than current forecast.

Despite the channel market demand being similar to last month, the market leader enlarged their market share due to better cost stature and brand value.

This month, in the channel market, the trading price of DRAM has slightly declined this month.
However, the spot price might decrease more in Mar. since it’s the quarter end.

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

NAND

Sluggish demand led to further price decline in the first quarter.

To increase the average content of solid-state drives (SSD), some companies have aggressively priced high-density value cSSD in 1Q23.
The high storage density uMCP price declined significant as well.
However, the smartphone vendors’ price target in 2Q23 is significantly lower than current estimation.
The NAND related contract price might decline more than 10% in the coming quarter.

The NAND wafer price declined this month, some trading prices are lower than the current official offering from the NAND manufacturing suppliers.
The February final price might be closed lower than current estimation. The Raw NAND price may decline further next month due to the quarter end.