Standard of Excellence: Delivering Excellence—A Daily Goal
Knocking Down the Bone Pile: Tin Whisker Mitigation in Aerospace Applications, Part 3
The Knowledge Base: Building the Workforce of Tomorrow With EMAC
Weak Demand Outlook and Rising Inventory and Supply Pressure DRAM Prices Down for 2025
November 18, 2024 | TrendForceEstimated reading time: 1 minute
The fourth quarter is a critical period for setting DRAM contract prices. TrendForce’s latest research reveals that prices for mature DRAM processes such as DDR4 and LPDDR4X are already trending downward due to ample supply and declining demand. The demand outlook for advanced products like DDR5 and LPDDR5X remains uncertain, and with high inventory levels among certain buyers and sellers, a further drop in prices by the end of Q4 cannot be ruled out.
Avril Wu, TrendForce Senior Vice President of Research, explained that the company had a more optimistic outlook on DRAM prices in 2025, driven by aggressive HBM capacity expansion by the top three suppliers, with new facilities expected to commence full production by 2026.
However, rapid changes in market dynamics have led TrendForce to revise its forecast, shifting from an anticipated price increase to a projected decline, with the first half of 2025 expected to see a particularly pronounced drop. In this trend, DDR4 and LPDDR4X are likely to face more significant downward pressure than DDR5 and LPDDR5X.
On the supply side, the weakening NAND Flash market, which currently offers lower profitability than DRAM, is expected to prompt some production lines to switch from NAND to DRAM. Additionally, while HBM3e 12hi is anticipated to quickly become mainstream for AI applications in 2025, not all suppliers may secure NVIDIA certification on time, increasing the likelihood that TSV capacity could be redirected to conventional DRAM production.
Wu also highlighted that rapid capacity expansion by Chinese suppliers has positioned them as the largest source of DRAM production outside the top three global suppliers. Additionally, ongoing weakness in consumer electronics demand is expected to further impact DRAM pricing in 2025. If manufacturers are unable to effectively manage production levels, inventory clearance across the industry will likely slow down considerably.
Share on:
Suggested Items
TRI Unveils New Multi-Camera AOI, TR7500 SIII Ultra
06/27/2025 | TRITest Research, Inc. (TRI), the leading test and inspection systems provider for the electronics manufacturing industry, proudly introduces the new TR7500 SIII Ultra.
NVIDIA RTX PRO 6000 Shipments Expected to Rise Amid Market Uncertainties
06/24/2025 | TrendForceThe NVIDIA RTX PRO 6000 has recently generated significant buzz in the market, with expectations running high for strong shipment performance driven by solid demand.
Green Circuits Boosts Test Capacity with New Takaya APT-1600FD System
06/24/2025 | Green CircuitsGreen Circuits, a full-service Electronics Manufacturing Services (EMS) partner to leading OEMs, is pleased to announce the purchase of its fourth Takaya APT-1600FD Double-sided Flying Probe Test System.
Reflections and Priorities: An Update to I-Connect007 Readers
06/24/2025 | Marcy LaRont, I-Connect007The electronics and manufacturing industry is evolving rapidly—with new technologies, deeper global connections, and a growing drive toward sustainability. To reflect these changes and our place in this dynamic space, we’re refreshing our brand.
France, Spain Renew Commitment to the Airbus A400M Programme
06/17/2025 | AirbusAirbus and OCCAR have reached an agreement with the A400M launch nations to secure production for the programme for the foreseeable future, improve the cost of operations, and jointly develop new capabilities.