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RAM prices will rise throughout 2021 due to high demand, according to Micron
08.01.2021 [09:32],
Alexey Razin

On the third of December, another fiscal quarter ended on Micron Technology’s calendar. Revenue grew 12% to $ 5.77 billion, beating analysts’ expectations. In the current quarter, the company expects to generate at least $ 5.8 billion, while relying on an increase in prices for memory chips.

Image source: StorageReview

For this manufacturer, the dynamics of prices for DRAM chips is important for the reason that now the company receives about 70% of all revenue from their sales. Micron management believes that the bottom of the next cycle in the RAM market has passed, and now demand will grow at an outstripping pace, warming up prices until the end of 2021 calendar year.

Micron’s DRAM revenue grew 17% YoY, NAND solid-state memory revenue grew 11%. The company increased production volumes of DRAM memory by more than 20% in 2021, this year it is expected to increase production volumes by more than 15%. Demand must outpace supply to help drive prices up.

In the NAND segment last year, memory production increased by 25%, this year demand will grow by 30%, but supply will increase at a faster pace. By the end of the year, the solid-state memory market should stabilize, but for this, manufacturers should be smart about increasing the volume of NAND release, as Micron representatives explained at the reporting conference. This company is ready to spend about $ 9 billion in the coming year to expand production and modernize it. Micron Technology shares after the publication of quarterly reports rose in price by 1.5%.