PC DRAM contract prices, which has grown 3-8% in the first quarter, are forecast to register another sequential growth of 13-18% in the second quarter, according to TrendForce.

End-market demand for PC DRAM chips remains strong, while demand for datacenter applications has started picking up, said TrendForce.

PC DRAM buyers hold "relatively low" inventory levels, at about 4-5 weeks, and will continue stockpiling in anticipation of chip price increases, TrendForce indicated. Meanwhile, PC OEMs and brand vendors are generally upbeat about their shipments in 2021 and have revised upward their production targets this year, it said.

On the supply side, TrendForce noted, major DRAM chip vendors remain conservative about building additional output resulting in limited growth in the global bit supply. Meanwhile, with DRAM demand for smartphones and servers picking up, the suppliers' output for PCs will be constrained in the second quarter, TrendForce said.

In particular, server DRAM demand has been rising in the second quarter - traditionally seen as a peak season for servers. Server DRAM contract prices will surge about 20% sequentially in the second quarter, TrendForce indicated.

Mobile DRAM prices will be also trending upward but at a slower pace in the second quarter, TrendForce said. Chip suppliers focus more on their server DRAM output for profit reasons, TrendForce continued.

PC DRAM contract prices could jump as much as 20% in the second quarter, according to industry sources. Prices for mainstream 8GB DDR4 modules are set to rise 15% or more and surpass US$30 in the second quarter, said the sources.

Spot market prices for 4Gb DDR4 chips have rallied over 70% in the past two months, while prices for 2Gb DDR3 are more than double the levels in January, the sources said. Growth in the spot market prices have started to slow down since the latter part of March, the sources said.

DRAM contract prices are expected to continue their rally but at a slower pace in the third and fourth quarters of this year, as the chip shortages will be partially relieved, according to the sources.

By: DocMemory
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