Agency: Xi'an blockade disrupts DRAM/NAND production, and price decline narrows to 8%
Jan 19,2022
The latest report from South Korean investment agency KB Securities pointed out that the lockdown measures in Xi'an, China should disrupt logistics and DRAM/NAND production. So seeing supply-demand dynamics improving in the first half of 2022 should improve the outlook for chip prices.
According to the agency's analysis, Samsung Electronics has begun to reduce the wafer input of its Xi'an factory, the capacity utilization rate of the Micron factory is also declining, and the workers in the DRAM packaging and testing production line have been reduced to 50% of the normal level. The production reduction should prompt major equipment Manufacturers increased inventories, which had a positive impact on price negotiations in the first half of the year.
Compared to the 10-15% quarterly decline forecast by the Market Research Center, KB Securities expects DRAM prices to drop by around 8% in the second quarter.
According to the agency's analysis, Samsung Electronics has begun to reduce the wafer input of its Xi'an factory, the capacity utilization rate of the Micron factory is also declining, and the workers in the DRAM packaging and testing production line have been reduced to 50% of the normal level. The production reduction should prompt major equipment Manufacturers increased inventories, which had a positive impact on price negotiations in the first half of the year.
Compared to the 10-15% quarterly decline forecast by the Market Research Center, KB Securities expects DRAM prices to drop by around 8% in the second quarter.