In the third quarter performance report of Taiwan Nanya Technology Corporation last Friday, President Dr. Peiying Li said that he expects DRAM prices to be lowered before the end of the year to compensate for the recent global increase in DRAM prices. This stems from the current market and supply chain conditions, which may actually lead to a decline in such expectations.
Although the demand for major DRAM consumer products (such as general consumer electronics, servers and smartphones) remains strong, “we expect the DRAM market [to] Entering a short-term minor correction in the fourth quarter of 21,” Lee concluded. However, due to the high ASP (average selling price) of its products, the company may be in a particularly vulnerable position. Focusing on specialty DRAM. The company provides DRAM chips. Of common products-such as office and business and smart phones; however, its other focus, namely cars, homes and entertainment (set-top boxes, Internet of Things and others) and enterprises (for networks and infrastructure) have already faced Continuous supply issuesThis may have led to these remarks by the South Asian president.
Nanya Technology Corporation usually ranks fourth among global DRAM manufacturers, second only to Samsung, SK Hynix and Micron.It is at a different level of competition from these manufacturers-Statistica will have its market share in the first quarter of 2021 Only 3%, Far below Samsung’s 42%, SK Hynix’s 29% and Micron’s 23% market share. However, considering South Asia’s market share and the president’s expectations, the Big Three will soon find themselves in the same situation. Nanya and its 3% market share are definitely more difficult than the three competing giants to obtain materials for DRAM manufacturing in this market. Because of their higher output, this will naturally be given priority.Industry analysts have predicted the decline in DRAM prices due to oversupply DRAMeXchange, Gartner, with International Data Center -Therefore, in the face of current events, Nanya is not the only company facing a decline in revenue. Considering the overall direction of higher prices for all consumer electronics products, at least one component facing a price reduction is definitely good news for consumers-even if they are not for investors and the company’s bottom line.