DRAM
The spot trading price raised this month.
The channel demand is stable and the trading inquiries increased after the Xian event.
The Xian lockdown would impact the major DRAM supplier’s computing DRAM output in the first quarter of 2022.
It could be more serious on the DRAM supporting if the transportable restriction sustains too long in Xian.
After the Xian event, most of the module markers are stoping quotation and waited for the updates of lockdown.
They would raise the selling price in January.
Since November, the component shortage issue eased. The PC and Consumer OEM demand increased.
The DRAM consumption from these two segments increased significantly this quarter, and the demand would be strong in the coming first quarter.
However, the 1Q22 contract price negotiation was also affected by the Xian event.
Therefore, the contract price declining ratio would be less than the previous perspective in 1Q22.
The spot price hike,
8G DDR4 x8 original brand component up around mid-single digit.
8G DDR4 x8 ETT/UTT grade component up mid to high single-digit.
The consumer demand improved, and the selling price increased in the second half of this month.
NAND
The component shortage issue eased for PC and consumer segments, the demand improved significantly.
The client SSD demand improved this quarter and the coming quarter.
However, the component shortage for performance client SSD and enterprise SSD still existed in the first quarter.
The Xian event could impact the market significantly if transportation restriction sustains too long.
As the current safety first priority, the major NAND supplier’s Xian NAND Flash fab production would be impacted by the Xian lockdown.
The extent of impact to the market is uncertain, it would depend on the COVID-19 condition and the government’s order in Xian.
Regarding the channel market, the demand is stable and the wafer trading price has no obvious decline.
In addition, most of the wafer selling activity paused after the Xian event.
The raw NAND wafer market would become positive to the supply side and the price could be stable or up if Xian gets worse.
However, some module houses and traders have the intention to raise the price in January.