NAND Prices Rebound Nearly 10%

NAND flash semiconductor prices have increased for three consecutive months, reinforcing the perception that memory prices may have bottomed out. As artificial intelligence (AI) continues to gain traction, the demand for IT devices is expected to expand, enhancing projections for semiconductor manufacturers such as Samsung Electronics and SK Hynix.

According to a report by market research firm DRAMeXchange on April 1, the average fixed transaction price for general-purpose NAND flash products (128Gb 16Gx8 MLC) used in memory cards and USB drives reached $2.51, reflecting a 9.61% month-over-month increase. After experiencing a continuous decline from September 2024 to January 2025, NAND prices began to rebound and have now posted gains for three consecutive months. The March increase marks the largest monthly rise since March 2017, when prices surged by 13.87%.

Meanwhile, the average fixed transaction price for DDR4 DRAM used in PCs has remained stable at $1.35 since November 2024, maintaining steady levels for five consecutive months.

The price recovery is primarily driven by reduced production of high-capacity NAND during economic downturns. Market research firm TrendForce noted, “Demand for enterprise-grade solid-state drives (SSDs) from data centers is expected to recover after a temporary adjustment in the second quarter, driven by growth in the AI industry.” The firm also highlighted that the launch of China's DeepSeek initiative will accelerate AI application adoption and data center expansion, further boosting enterprise-grade SSD demand.

Industry analysts predict that increasing consumer adoption of AI-enabled mobile devices will further drive demand for memory semiconductors. According to Gartner, global spending on generative AI is projected to reach $644 billion, representing a 76.4% year-over-year growth. IT devices such as AI-powered smartphones and PCs are expected to account for approximately 80% of total expenditures.

With expectations of a semiconductor demand rebound, memory manufacturers, including Samsung Electronics and SK Hynix, are actively exploring strategies to raise chip prices or expand production. On March 25, Micron Technology, the world’s third-largest DRAM manufacturer, announced a price increase, citing “unexpected growth in demand across various memory semiconductor sectors.” Additionally, SanDisk increased NAND prices by over 10% starting in April.