27/03/2025
In the short term, the price of storage is in an upward cycle
Micron Technology has confirmed the price increase, and the company has sent a price increase letter to agents and distributors.
It is revealed that the price increase may be more than 10 points. Now, both the memory and storage markets have begun to recover and are expected to grow by 2025 and 2026. With rising demand in various fields, the US memory giant is raising prices to reflect tightening conditions. At present, the author has consulted the relevant person in charge of Micron on WeChat, but has not received a response.
Micron is one of the world's largest manufacturers of semiconductor storage and imaging products. Its main products include DRAM, NAND flash memory, NOR flash memory, SSD solid-state drives and CMOS image sensors. The head office (Micron Technology, Inc.) is located in Boise, the capital of Idaho in the northwest of the United States. As one of the world's three largest storage chip manufacturers, Micron's product supply directly affects the global chip landscape.
Data has become the core element of AI, cloud computing and end-side intelligence, and storage has become an invisible force supporting the digital world. Micron predicts that "by 2025, 43% of PCs will have AI capabilities, and by 2028, this proportion will rise to 64%. Future AI PCs will require 80% more memory capacity than current PCs." Smartphones are the gateway for people to connect to the digital world. With AI functions, they will drive greater market growth. Institutions predict that the AI mobile phone market will grow by 73.1% year-on-year in 2025. Micron said, "The LPDDR5X memory capacity in flagship phones has increased by 50-100% year-on-year."
In mid-March, it can be seen from the financial report data released by Micron that storage chip sales have rebounded and high-end HBM is in short supply.
The financial report shows that the company's second-quarter revenue and profit are better than market expectations. At the same time, the third-quarter revenue forecast is also higher than Wall Street's expectations, indicating that the market has strong demand for its HBM chips for artificial intelligence models.
DRAM and NAND demand is growing rapidly
Micron also provides flash NAND chips for the data storage market. Micron expects that demand for DRAM and NAND will grow in the future data center and consumer markets.
Sanjay Mehrotra, chairman, president and CEO of Micron Technology, said: "Micron's second-quarter earnings per share were higher than expected, and data center revenue tripled year-on-year... As DRAM and NAND demand grows in data centers and consumer-oriented markets, we expect quarterly revenue in the third quarter to hit a record high, and we are on track to achieve record revenue and significantly improved profitability in fiscal 2025 (ending August this year)."
Micron said that due to uncertainty in timing, type and implementation, it did not include the impact of new tariffs that US President Trump may impose in its forecasts, but intends to pass all costs on to customers.
Supply and demand determine the trend of storage price increases
As a necessity for AI products, memory chip supply, demand and price fluctuations are closely related. The recent continuous reduction in memory chip supply has directly catalyzed the chip price increase.
Micron, Samsung, Hynix and others have actively reduced production and increased factory prices, and the market has been forced to increase prices. Guotou Securities said that after SanDisk announced on March 6 that the price of all its products would increase by more than 10% from April 1, the five major original manufacturers including Samsung, Micron, and SK Hynix have reduced their production capacity by 35% (Samsung NAND production cut by 20%, Micron cut by 10%), directly pushing the global storage chip inventory from the peak of 112 days in 2024 to 68 days.
People from Chinese module manufacturers said that the prices of all storage chip original manufacturers, including mainland manufacturers, are rising this year, and small-capacity NAND is the first category to rebound in this round of price increases.
After SanDisk officially announced the price increase, Samsung and Yangtze Memory also increased their prices. The company's retail brand Zhitai may increase the channel pickup price from April this year, and the increase may exceed 10%.
https://www.investing.com/news/stock-market-news/sandisk-plans-10-price-hike-for-nand-products-from-april-1-3915218?utm_source=yahoo&utm_medium=referral&utm_campaign=yahoo_finance
＃Nand ＃ssd ＃dram ＃micron ＃SanDisk ＃SANSUNG ＃YMTC ＃sata ＃LPDDR5 ＃DDR4 ＃DDR4 ＃usb
