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Tuesday | October 19, 2021
Memory manufacturers anticipate further increases

Memory manufacturers anticipate further increases

Memory module makers expect DRAM contract prices to see double-digit sequential increases in the third quarter of 2021. Adata and Nanya confirmed this trend in discussions with Digitimes. Dram memory industry mémoire hausses

Memory price increases have been steady since last year

Nanya explained that the situation was favorable from an economic point of view since the prices which recorded a substantial increase in the second quarter of 2021, should continue to rise in the third quarter. This situation of increase should last at least until September, which will support the gross margin of Nanya in the third quarter, said the company.

Ram increases benefit manufacturers

Nanya saw its gross margin rise from 13.2% to 42.3% in the second quarter of 2021, while net profits jumped 127.9% quarter-on-quarter to NT$6.16 billion (US$219.9 million). At Adata, revenue exceeded NT$10 billion (US$356.6 million) in Q2 2021. Sales of its DRAM modules jumped nearly 33 percent quarter-over-quarter to more than NT$4.8 billion. Adata’s more modest increase in SSD sales was 7.5% in the second quarter. Adata also confirms that major chip suppliers are shifting much of their production to DDR5 memory, which will necessarily weigh on prices for DDR4, which will have less supply. Overall DRAM supply will remain limited until 2022 according to company executives.

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Edited by Calliers

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