Memory chip suppliers will be engaged in inventory adjustments throughout the second half of this year, but are expected to see their inventories return to a healthy state in the first half of 2023, according to market sources.

The chip vendors' downstream customers continue to be reluctant to stockpile in anticipation of further price drops, said the sources. Memory spot prices have seen larger drops in August compared to July, with DDR4 and DDR3 prices falling over 10% in August alone.

Drops in commodity DDR4 chip prices have shown no signs of slowing down in August, as inventory adjustments at PC makers proceed slowly, the sources noted. Spot prices for 8Gb DDR4 chips have fallen 11-14% in August alone, with prices for 16Gb DDR4 chips also going down about 10%.

DDR3 prices have dropped about 14% in August after an around 7% decrease in July, the sources said.

Falls in DRAM and NAND flash contract prices are also expected to widen in the third quarter, the sources indicated. Consumer DRAM prices are expected to fall 13-18% in the third quarter.

DRAM and NAND flash contract prices are poised to fall through the end of 2022, according to the sources. If suppliers stay reluctant to scale back their output, prices may continue trending downward in the first quarter of 2023.

By: DocMemory
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