PC demand remained conservative momentum, and the shipment in the second half of this year and 2023 could be worse than expected.
The smartphone vendors cut order and revising down the shipment target a lot due to poor economic perspective in China and EU market. We might be not able to see shipment increasing compared with last year.
Regarding server market, China DC and OEM market performed poor and worldwide leading OEMs and DC cut their demand as well.
The overbooking on the server side would impact the 2H22 demand, some ODM and OEM’s inventory much higher than normal level.
The inflation and Russia Ukraine war would cause the possible recession and impact the consumer market furthermore.
The China consumer market gets better after the easing of Shanghai lockdown situation, the subsidies on consumer devices would enhance the consumer demand. However, it’s not good enough for consumer memory to get rid of current oversupply condition.
DRAM
DRAM Price declined further with sluggish demand
Channel demand weak and trading activity was limited.
The PC, smartphone, and sever segments had demand cut this month.
The suppliers were trying to sell more DRAM to the module house in order to meet the quarterly shipment target by lowering down the selling price.
Therefore, the DRAM price declined significantly and some module house inventory might increase much more than expected.
The Channel UDIMM price declined a lot, and the price is negotiable with volume.
In this month,
8G/16G DDR4 x8 original brand component declined high single digit.
8G/16G DDR4 x8 ETT/UTT grade component declined 10%+.
4G DDR3 x16 original brand component declined high single digit.
4G DDR3 x16 ETT/UTT grade component declined 10%+.
NAND
NAND Flash demand was soft and price dropped significantly
Both eSSD and OEM cSSD order cut due to weak demand perspective.
In addition, the memory demand for smartphone order adjusted down more.
Therefore, the NAND suppliers are promoting raw Nand to the market aggressively the month, the ASP declined more than double digit compared with last month.
However, the dealt volume is not much, the most of customers are expecting NAND price would decline more in the coming months.
Some agents were trying to sell at lower price to decrease the inventory pressure.
The market price for eMMC declined a lot due to weak consumer demand, the eMMC market price is much lower than the official offering.
The channel cSSD price for 618 event is aggressive, but demand of this event is uncertain.