Taiwan-based memory module makers have put increased focus on growing sales of their high-margin niche-market product lines to mitigate the impact of falling DRAM and NAND flash prices since 2019, according to industry sources.

Prices for NAND flash devices including SSDs, eMMC and flash cards as of the end of May fell over 20% since 2019, while the overall NAND flash memory prices declined nearly 30%, said the sources. Meanwhile, DRAM spot market prices have dropped 20-25% in the second quarter putting the contract quotes under continued downward pressure, the sources indicated.

The falling memory chip prices have encouraged Taiwan-based memory module makers to focus more on their niche-market offerings, the sources noted.

Apacer Technology president CK Chang has expressed optimism that the adoption of SSDs among consumer mobile devices will be driven by NAND flash price falls, while reiterating that the company remains focused on its value-added products consisting of high-ASP solutions for industrial, data center and server applications.

Chang also commented that chipmakers' transition to 3D NAND process technology will provide better cost competitiveness for its industrial control products. About half of Apacer's industrial control devices will utilize 3D TLC chips, according to Chang.

Apacer disclosed previously the company will be pursuing profit growth this year by enhancing further its high-margin offerings.

Adata Technology will rely on the three niche segments of gaming, industry control, and electric motors to raise its gross margins, company chairman Simon Chen remarked recently. Chen continued that gaming related products are expected to account for 8-10% of company revenues in 2020, and sales of its industrial SSDs that yield the highest gross margins will climb to over 10% as a proportion of revenues this year.

Team Group believes its focus on gaming, industrial and embedded applications will help the company mitigate the impact of memory chip price volatility, company chairman Danny Hsia was quoted as saying in previous reports.

By: DocMemory
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