NAND Flash and DRAM ASPs to Continue Falling in Q3

Key Takeaways

• NAND flash prices are being hit by weak demand from smartphone makers, who are facing lower sales due to the ongoing global chip shortage.
• Server makers are also reducing their purchases of NAND flash, as they are shifting to using PCIe Gen 5 SSDs, which are more expensive.
• DRAM prices are being supported by strong demand from the cloud computing and data center markets.

Average selling prices (ASPs) for NAND flash are forecast to continue dropping by about 3% to 8% in Q3 2023, according to a new report from TrendForce. The decline is being driven by a number of factors, including weak demand from smartphone and server makers, as well as high inventory levels.

However, TrendForce notes that prices may recover in Q4 2023, as demand from these segments is expected to improve. In the meantime, the decline in DRAM ASPs is expected to narrow to 0% to 5% in Q3 2023. This is due to strong demand from the cloud computing and data center markets.

Overall, the memory market is expected to remain under pressure in Q3 2023. However, there are some signs that prices may start to recover in the fourth quarter.

Businesses that use NAND flash and DRAM should be aware of the potential for continued price declines in the third quarter. This could lead to higher costs for these components, which could impact the bottom line.

Businesses should also monitor the market closely for signs of a recovery in prices. If prices do start to rebound in the fourth quarter, businesses may be able to negotiate lower prices for these components.

The memory market is expected to remain volatile in the third quarter. Businesses should be prepared for the potential for continued price declines, but there are also some signs that prices may start to recover in the fourth quarter.