Affected by factors such as inflation, interest rate hikes, and China’s lockdown, the memory industry was reimbursed for the traditional peak season in the third quarter, and the spot price of DRAM plunged. The spot inventory on the market is not high, and it is expected that the spot price has limited room for further decline.
DRAM maker Nanya (2408-TW) at the beginning of the quarter viewed the performance of the third quarter conservatively, believing that costs and prices were headed in an unfavorable direction, gross profit margins were likely to decline, and operations were more challenging.
However, with the rising inflationary pressure in the third quarter, DRAM manufacturers are faced with the need to correct their inventories, which has spread from smartphones and computers in the past two quarters to server and data center applications.
Industry players admitted that the increase in external environmental uncertainties has impacted end demand, and even the previously stable servers have also been affected and slowed down. Under the uncertain demand prospects, customers in various major application fields have begun to adjust their inventories. Accelerating the correction, it is expected that the inventory of DRAM manufacturers will continue to increase in the second to third quarters.
The industry believes that DRAM is an oligopolistic market, and the spot price in the third quarter has fallen deeply, and the market is also shallow. Suppliers will not be willing to lower prices. In addition, the spot inventory is not high, and the spot price of DRAM in the third quarter will not collapse once more. , the contract price may be corrected slowly.
Memory Module Factory ADATA (3260-TW) also believes that although the traditional peak season consumer demand is not as expected due to the impact of the global economic environment, the spot price of DRAM is near the bottom in the short term, and further declines are limited. Gross profit margin is expected to gradually stabilize in the second half of the year.
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