Prices of conventional DDR4 modules have already risen by almost 25% so far, as major PC manufacturers are aggressively expanding their production targets. Server DRAM modules are also experiencing higher than expected price increases.
In addition to the DRAM supply shortage issue, server DRAM procurement has benefited from the positive shift in companies’ views towards UT investments, as well as strong demand related to migration to the cloud.
There was already a supply shortfall in Q1, and these developments will drive even more demand in Q2, making it difficult to agree on pricing.
Suppliers are in a more advantageous position in contract negotiations, as the DRAM market is an oligopoly.
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