Memory chip market may be showing signs of bottoming out as China’s YMTC leads Samsung, Micron in raising prices
- YMTC recently informed its customers that it will increase pricing for its 3D NAND flash memory by up to 5 per cent, according to Taiwan media report
- The price rise comes ahead of market anticipation about a rebound in the sector, which is expected to gradually stabilise in the second half
The memory chip market may have started to bottom out after more than a year of price declines brought about by a supply glut, as Yangtze Memory Technologies Corp (YMTC), China’s top chip maker, is reportedly increasing prices.
YMTC, which accounts for about 5 per cent of the global NAND memory chip market, recently informed its customers that it will increase pricing for its 3D NAND flash memory by up to 5 per cent, the Taiwan Economic Times reported on Thursday, citing unidentified sources.
YMTC did not respond to a request for comment.
Other major memory chip makers such as Samsung Electronics, SK Hynix and Micron Technology are expected to follow suit and raise NAND prices by a similar range, according to Taiwanese IT media DigiTimes.
Micron, the biggest US memory chip maker - and currently under a Chinese cybersecurity review - told distributors this month that it will not accept inquiries for DRAM and NAND flash products below current market prices, the report said.
“These moves indicate that these companies believe the market has reached its bottom and that the imbalance of supply and demand is gradually easing,” said Wang Lifu, an analyst at research group ICwise.