Memory chip prices are expected to bottom out in the first quarter of 2022

According to industry insiders, the prices of DRAM and NAND flash memory continue to show a downward trend, but the rate of decline has slowed down, and prices are expected to bottom out in the first quarter of next year.

According to reports, prices of 8Gb and 16Gb DDR4 chips fell by 0.7-1.5% in November, while the average decline in October was 7%. The decline in prices of 3D TLC NAND flash memory chips in November also slowed down compared with the previous month, and the prices of SLC and MLC NAND chips have stopped falling.

The source pointed out that in order to maintain price stability, chip suppliers remain cautious about capacity expansion next year, allowing distributors to sell better prices. The source also said that the overall DRAM supply in 2022 is expected to increase by about 5%.

The source also pointed out that although retailers and distributors remain pessimistic about the demand outlook for the first quarter of 2022, the visibility of demand may become clearer after mid-February.