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Memory module vendors are replenishing inventory


Tuesday, January 21, 2020

Anticipating that memory chip prices will be rising this year, memory module makers have started replenishing inventory while also making upward adjustments in their DRAM module quotes, according to industry sources.

Memory module firms including Adata Technology, Transcend Information and Team Group are expected to enjoy a rally in their product ASPs and profit growth in 2020, the sources said.

DRAM and NAND flash prices fell dramatically during 2019, when many module companies saw their revenues register about 20% decreases on year, the sources observed. Team Group and InnoDisk were the few memory module makers generating single-digit revenue drops in 2019.

Memory module manufacturers have seen their order visibility stretched this year, and are positive about their product ASPs that are likely to be 20-30% higher than their 2019 average, the sources noted.

Team Group's focus on gaming, industrial and embedded applications would help the module firm mitigate the impact of memory chip price volatility, company chairman Danny Hsia was quoted as saying in previous reports. Team Group saw its 2019 revenue hit the second highest annual level in its history to reach NT$6.9 billion (US$230.5 million).

Team Group's gaming product sales already exceeded sales of standard memory devices in 2019, said company president CW Chen. Despite a slowdown in the gaming SSD market, the company is still optimistic about its gaming product sales this year.

Team Group will be striving to grow its revenues in 2020 to a new record high through pursuing growth in sales of both its standard and industrial product segment, according to Chen.

By: DocMemory
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