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Shipment rising with prices falling at the memory market

Monday, May 13, 2019

Taiwan memory module makers showed mixed performances in the first quarter of 2019 amid sharp price falls for both DRAM and NAND flash, but they all expect the price falls to slow down and shipments to pick up gradually in the second quarter as clients are making preparations for the high season in the third quarter, according to industry sources.

In the first quarter, Adata Technology swung to net profit of NT$152 million (US$4.90 million) from losses a quarter earlier, with the profits also hitting a six-quarter high.

Team Group saw its first-quarter revenues rise 3.78% on year to NT$1.69 billion, a nine-year high for the same quarter.

In contrast, Transcend Information witnessed its first-quarter net earnings for the quarter drop 6.89% on quarter and 23% on year to NT$368 million, with revenues sliding 23% on quarter.

The makers expect contract prices for DRAM and NAND to hit the bottom in the second quarter before rebounding in the third quarter on robust market demand in the high season.

Makers are moving to ramp up shipments to grab higher market shares. Team Group, for instance, has completed compatibility and reliability validations for its full series of T-Force gaming memory modules seeking to boost its share of the gaming market.

By: DocMemory
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