Memory spot market prices have stopped falling, indicating consumer sentiment could be improving, according to industry sources.
The impacts of the COVID-19 pandemic on end-market demand will be easing in the second half of 2020, said the sources, adding that consumer confidence will be restored along with the easing of the outbreak.
Meanwhile, orders for several new Chromebooks will start picking up in the third quarter, while demand for other consumer IT devices will be pushed up thanks to the launch of new models, the sources indicated.
Samsung Electronics and SK Hynix have both reportedly landed a ramp-up in memory orders from Huawei recently, the sources said. SK Hynix is already a major supplier of Huawei, and will be no doubt among the beneficiaries of Huawei's attempt to further cut its reliance on US suppliers, the sources said.
DRAM and NAND flash spot prices ran into some turbulence earlier in the second quarter, as coronavirus lockdowns in several major cities led to growing uncertainties, the sources said.
Despite recent stability in spot prices, the price trend in June will be a key indicator of whether end-market demand is on its path to recovery, the sources noted.
In the contract market, DRAM and NAND flash prices have performed relatively stable in the second quarter thanks to demand arising from stay-at-home economy, the sources said. Suppliers also intend to control their output making a further positive contribution to contract pricing.
Stability seen in memory spot prices recently
Photo: Digitimes file photo
Article translated by Jessie Shen
