Prices of conventional DRAM, NAND products reach record highs in July: data

In July, the average prices of conventional DRAM and NAND flash products surged to record highs, according to industry data released on Monday. This upward trend was primarily fueled by the burgeoning demand for artificial intelligence (AI), as highlighted by data from the industry tracker DRAMeXchange.

The benchmark DRAM products for PCs experienced a price increase of 14.3 percent, climbing from the previous month's US$24 to a record-high average fixed contract price of US$24. This marked the highest level since DRAMeXchange began compiling data in June 2016. Meanwhile, NAND flash prices continued their upward trajectory, with the average price of benchmark products exceeding the $30 mark in July.

The sharp gains were predominantly seen in single-level cell NAND products, whose average selling prices experienced a substantial jump of 35 percent to 51 percent from the prior month. This surge in prices was attributed to memory suppliers intensifying production capacity for high-layer 3D NAND and advanced manufacturing processes to meet the high demand in the AI sector.

On the other hand, price increases for multi-level cell NAND products were comparatively modest, ranging between 4 percent to 8 percent. This was largely due to customers exhibiting greater caution about rising costs, following steep price hikes over the past year.