NAND Flash Prices Rebound Amid Strategic Production Cuts and AI Demand
DRAM Prices Remain Stable as PC Manufacturers Stockpile Inventory in Response to U.S. Tariff Concerns
- Editor Kim Eun-jin
- 2025.03.02 17:45
The semiconductor market is witnessing a notable shift as NAND flash prices rebound after a prolonged decline, while DRAM prices remain stable. This development comes amid strategic production cuts by major manufacturers and increased demand driven by artificial intelligence (AI) applications.
NAND prices, which had been on a downward trajectory since the second half of last year, began to recover in January. As of Feb. 28, the average fixed transaction price of general-purpose NAND flash products (128Gb 16Gx8 MLC) rose to $2.29, marking a 5.29% increase from the previous month. This upward trend is attributed to production cuts by companies such as Samsung Electronics, SK hynix, Micron, and Kioxia, aimed at alleviating oversupply. Additionally, China's subsidy policy has spurred smartphone sales, leading to a depletion of NAND inventory.
The market anticipates that production cuts by suppliers and AI demand will drive the recovery of NAND prices as early as the second quarter of this year. TrendForce expects smartphone brands to stockpile low-cost inventory in the second quarter, capitalizing on the slowdown in NAND price declines. Furthermore, if NVIDIA increases shipments of its Blackwell series products in the second half, demand for high-value NAND products, such as enterprise solid-state drives (SSDs), is also expected to rise.
In contrast, DRAM prices have remained stable for three consecutive months. As of Feb. 28, the average fixed transaction price for general-purpose DRAM products for PCs (DDR4 8Gb 1Gx8) was $1.35, unchanged from the previous month. This stability follows a significant 20.59% drop in November last year. TrendForce noted, "PC manufacturers have been stockpiling inventory in advance due to concerns over U.S. import tariffs, leading to a rapid depletion of DRAM inventory."
Most DRAM suppliers and PC manufacturers have completed their supply contracts for the first quarter of this year, and DRAM supply prices are expected to be 10-15% lower than the previous quarter. SK hynix's focus on server DRAM production has temporarily limited PC DRAM supply, and delays in expanding production capacity by Chinese companies have also impacted DRAM supply.
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