Report: DRAM Prices Set to Decline 3-8% in Q4 Due to High Levels of Inventory

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Report: DRAM Prices Set to Decline 3-8% in Q4 Due to High Levels of Inventory

In the latest report from TrendForce, a Taiwanese semiconductor market analyst firm, we have an updated estimation DRAM pricing structure for the upcoming quarter. As the report notes, DRAM prices are set to decline by 3-8% in the fourth quarter of 2021 (4Q21), due to the rising inventory of DRAM clients.

According to the report for 4Q21, the DRAM supply is at a healthy pace to outrun the demand, creating a price decline in the DRAM market. This decline is projected to be anywhere from 3 to 8%, compared to DRAM prices in the previous period.

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What is the reason for this you might wonder? Well, according to the research data, DRAM suppliers are carrying a very healthy amount of inventory for their clients to absorb, however, clients are stocking up what is considered an unhealthy amount of inventory, resulting in smaller demand for a new supply to be added.

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