Micron to Raise DRAM, SSD Prices by 25%

Industry insiders have disclosed that Micron plans to implement a price increase of over 25% for its DRAM and SSD (Solid State Drive) products in the second quarter of 2024. Negotiations regarding pricing are currently underway, not only for Micron but also for other suppliers of storage chips. The current market favors suppliers, leading some to already finalize their pricing strategies.

Following a significant earthquake in Hualien, Taiwan, on April 3rd, major players such as Micron, SK Hynix, and Samsung have ceased providing quotations for storage chips. While Samsung remains unaffected, it has suspended shipments awaiting confirmation from its headquarters. Despite no formal announcements yet, industry experts anticipate substantial price hikes for memory products post-earthquake.

Approximately 60% to 65% of Micron's DRAM capacity resides in Taiwan, contributing to 15% of the global capacity. Moreover, advanced DRAM products like HBM3E are manufactured in its Taichung facility. Conversely, SK Hynix and Samsung do not operate DRAM production in Taiwan. It's speculated that Micron's pricing adjustments for DDR4, DDR5, and SSD products may persist until the end of the second quarter, driven by robust demand from data centers.

Insiders in the supply chain reveal that the earthquake has marginally impacted Micron's production capacities in Taoyuan and Taichung, Taiwan. While specific production capacity data is unavailable, the recovery process post-earthquake-induced shutdowns is expected to be protracted.

In the realm of NAND Flash memory chips, industry sources suggest Samsung's intentions to raise prices for enterprise SSDs by 25% in the upcoming quarter while also ramping up production capacity. Insider insights highlight that NAND wafer prices have recently surged, with the average price of 512Gb chips exceeding $4.20.

The ongoing advancements in Artificial Intelligence (AI) are accelerating the transition of servers from traditional mechanical hard drives (HDD) to solid-state drives (SSD), consequently amplifying the demand for storage chips.