Following the massive fire at the factory of SK Hynix early last month, the price of DRAM not surprisingly shot right up with the cost of a 2Gb DDR3 DRAM chip rising up from $1.60 to $2.27 – that’s a rise if nearly 42% in cost. Thanks to a shift in production levels to SK Hynix’s factory over in South Korea, SK Hynix were able to lower the financial impact that I would have otherwise had on both themselves and the industry as a whole.
With this in mind however, following a call between market analysts and executives at Micron, DRAM memory chip prices are expected to be on the rise once more, but this time by only a fraction (<10%) in the first fiscal quarter when compared to the last quarter which finished in August.
On the contrary however, the price of NAND has been predicted to drop by up to 10%. As a result we should expect to see the price of SSDs and other flash storage drop slightly over the next few months as signs that the market is stabilising once more become more and more clear.
With all this in mind, its safe to say that the market is far more stable than we expected and any worries about a prices of NAND shooting through the roof in a similar fashion to what we saw when Hitachi’s factory was flooded should not be expected.