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Server DRAM Prices to Rise in Q2

Posted by Advanced MP Technology

Apr 16, 2018 8:30:00 AM

According to the latest data of DRAMeXchange, the top three Server DRAM suppliers are progressing towards the specification of 32GB RDIMM, and the 2018 Q1 quotes offered by Server DRAM suppliers will grow by only 4% compared with 2017 Q4 in order to ensure sales by favorable prices. In Q2 of this year, as domestic server demand from China rises, the server DRAM prices will continue to rise.

According to Mark Liu, senior analyst at DRAMeXchange, the annual global server shipment will keep single-digit growth this year. Particularly, the growth in Chinese market in Q1 will reach an outstanding 20%. On the Server DRAM supply side, suppliers offer favorable contract prices in response to transition into new platform and high-density modules, dampening the price rise.

 

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Top three DRAM suppliers will flexibly adjust their product mixes, and put 16Gb mono die into mass production in Q3&Q4.

Cloud computing and cloud storage are the focus of market in recent years. On the one hand, the server industry has benefited from the popularity of smart end-devices; on the other hand, enterprise servers are growing cloud and drive the demand for network services, becoming the key growth momentum of server market.

Due to the increasing demand for Server DRAM and data centers worldwide, the top three DRAM suppliers will increase the proportion of advanced processes in overall output in Q3 & Q4, which will improve cost structure and high-density module's adoption rate.

Screen Shot 2018-03-29 at 4.09.07 PM

Currently the Korean DRAM manufacturers plan to produce high-density 16Gb mono die in Q3 with the goal to effectively increase the penetration rate of modules with density above 64GB. In Q3 & Q4 of this year, the mainstream process of Server DRAM will gradually shift to 17nm and 18nm node. The increasing proportion of high-density chips and improvement in cost structure will accelerate the speed of transition into high-density modules.

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