Q2 contract prices for DRAM are expected to increase by 13–18%, while NAND contract prices are expected to increase by 15–20%, says TrendForce, with eMMC/UFS seeing a smaller price increase of about 10%.

TrendForce reports that manufacturers are wary of potential crowding out effects on HBM capacity. Specifically, Samsung’s HBM3e products, which utilize the 1alpha process node, are projected to use about 60% of this capacity by the end of 2024.

This substantial allocation is expected to constrict DDR5 suppliers, particularly as HBM3e production significantly increases in Q3. In response, buyers are strategically increasing their stock in Q2 to prepare for anticipated HBM shortages beginning in the third quarter.

As energy efficiency becomes increasingly crucial for AI inference servers, North American CSPs are adopting QLC enterprise SSDs as their preferred storage solutions.

This shift is boosting demand for QLC enterprise SSDs causing rapid inventory depletion among some suppliers and making them hesitant to sell. Additionally, due to the uncertain recovery in consumer product demand, suppliers are generally conservative about capital investments in non-HBM wafer capacities, particularly for NAND Flash, which is currently priced at the breakeven point.

By: DocMemory
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