DDR4 expects prices to soar by 10% in the second quarter
In the corporate briefing session last week, Micron, a US memory maker, mentioned that the recent DRAM plant's nitrogen supply disruption event will result in a 2-3% reduction in DRAM output this quarter. Industry sources estimated that the occurrence of the nitrogen incident was the Micron Taichung Plant (formerly Rui Jing). The affected product line is currently a serious standard and server DDR4. It is expected that the price will increase by 10% in the second quarter and it will increase production of DDR4. South Asia Branch, A-DATA with DDR4 inventory will benefit the most.
Last week, the memory industry reported the occurrence of nitrogen supply problems at the Micron Taichung Plant, which caused a reduction in production capacity of approximately 2.7 to 32,000 units. Micron Chief Executive Sanjay Mehrotra confirmed the matter at the Law Society. Sanjay Mehrotra mentioned that the obstruction of nitrogen supply may lead to a 2-3% drop in DRAM output this season. It is expected that this week will resume normal output, and this year, the annual growth rate of bit-rate in Micron could maintain an annual increase of 20%. The goal is mainly from 1X nanometer process miniaturization.
Micron’s fiscal second quarter (December 1st last year to March 1st of this year) was bright, with revenue of $7.351 billion, net profit attributable to parent company of $3.309 billion, and net profit of $2.86 per share. market expectation. However, due to the impact of nitrogen production at the Micron Taiwan plant site, the third quarter revenue forecast will therefore be reduced by 2%, and revenue is expected to fall between $7.2 billion and $7.6 billion, slightly lower than market expectations.
However, this year's DRAM market is in short supply, and in particular DDR4 is the most out of stock. The occurrence of nitrogen supply incidents at the Micron Taichung plant caused a loss of production capacity. The industry believes that DDR4 prices will significantly increase in the second quarter. Module makers pointed out that the lost production capacity of the Micron Taichung Factory is just standard and server DDR4, but the demand for e-sports PCs and data centers since March is stronger, and it is expected that the shortage of DDR4 products will be more serious in the second quarter. The average price increase is expected to see a rate of 10%, 8GB DDR4 module is expected to rise above 70 US dollars and create a new historical price.
The nitrogen incident at the Micron Taichung Plant affected DDR4 output. With limited capacity and mutual exclusion, corporate names such as South Asian Branch, Winbond, Jinghaoke, A-Dong and other DRAM concept stocks will benefit, and they will also increase production of 20-nm DDR4. The South Asian Branch, as well as A-DATA with a high DDR4 inventory, will benefit even more. In the first two months of this year, South Asia Branch’s combined revenue reached NT$12.075 billion, which was a significant increase of 50.2% from the same period of last year. Legal persons are optimistic that revenue in March will be expected to stand above NT$6 billion.
As the production capacity of the three major DRAM makers shifted into server DDR4 and GDDR for graphics in the first half of the year, niche-based DRAM production crowding effect emerged in the second quarter, but cryptocurrency mining machines, including Bitland, use niche-based DRAMs. It is also optimistic that companies such as Winbond, Crystal Haoke and Aipu will also stick rain.
Last week, the memory industry reported the occurrence of nitrogen supply problems at the Micron Taichung Plant, which caused a reduction in production capacity of approximately 2.7 to 32,000 units. Micron Chief Executive Sanjay Mehrotra confirmed the matter at the Law Society. Sanjay Mehrotra mentioned that the obstruction of nitrogen supply may lead to a 2-3% drop in DRAM output this season. It is expected that this week will resume normal output, and this year, the annual growth rate of bit-rate in Micron could maintain an annual increase of 20%. The goal is mainly from 1X nanometer process miniaturization.
Micron’s fiscal second quarter (December 1st last year to March 1st of this year) was bright, with revenue of $7.351 billion, net profit attributable to parent company of $3.309 billion, and net profit of $2.86 per share. market expectation. However, due to the impact of nitrogen production at the Micron Taiwan plant site, the third quarter revenue forecast will therefore be reduced by 2%, and revenue is expected to fall between $7.2 billion and $7.6 billion, slightly lower than market expectations.
However, this year's DRAM market is in short supply, and in particular DDR4 is the most out of stock. The occurrence of nitrogen supply incidents at the Micron Taichung plant caused a loss of production capacity. The industry believes that DDR4 prices will significantly increase in the second quarter. Module makers pointed out that the lost production capacity of the Micron Taichung Factory is just standard and server DDR4, but the demand for e-sports PCs and data centers since March is stronger, and it is expected that the shortage of DDR4 products will be more serious in the second quarter. The average price increase is expected to see a rate of 10%, 8GB DDR4 module is expected to rise above 70 US dollars and create a new historical price.
The nitrogen incident at the Micron Taichung Plant affected DDR4 output. With limited capacity and mutual exclusion, corporate names such as South Asian Branch, Winbond, Jinghaoke, A-Dong and other DRAM concept stocks will benefit, and they will also increase production of 20-nm DDR4. The South Asian Branch, as well as A-DATA with a high DDR4 inventory, will benefit even more. In the first two months of this year, South Asia Branch’s combined revenue reached NT$12.075 billion, which was a significant increase of 50.2% from the same period of last year. Legal persons are optimistic that revenue in March will be expected to stand above NT$6 billion.
As the production capacity of the three major DRAM makers shifted into server DDR4 and GDDR for graphics in the first half of the year, niche-based DRAM production crowding effect emerged in the second quarter, but cryptocurrency mining machines, including Bitland, use niche-based DRAMs. It is also optimistic that companies such as Winbond, Crystal Haoke and Aipu will also stick rain.