DRAM semiconductor prices rise by 24 percent, will continue to rise until 2022.
DRAM semiconductor prices rise by 24 percent and it will continue to rise for the next 2 years
Reports are coming in from Korea that the DRAM semiconductor market has raised the price of transactions by 24 percent ($3.44) since the end of November. This increase is up to three months ahead of the fixed price applied by large customers, such as computer or smartphone manufacturers. The biggest problem of all is that it is not a random increase, and is that it indicates that prices will rise again early next year. The price rise would continue until 2022.
The semiconductor industry sees this price movement as a precursor to a super cycle (long-term boom). A similar phenomenon occurred just before the 2017-2018 memory semiconductor supercycle. Samsung Electronics’ share price also shot up by more than 5% on December 24th, reaching a record high. This reflects the expectations of Samsung Electronics‘ earnings for next year, as its main market is the memory market.
“The semiconductor market will grow by 8.4% next year, far exceeding this year’s growth rate (5.1%). As the demand for IT devices such as smartphones and handheld consoles grows, which had contracted due to the coronavirus crisis, there will be a shortage of supply of semiconductors, leading to increased prices and a long-term boom,” revealed the WSTS, a semiconductor market statistics agency that is involved in more than 60 major global semiconductor companies.