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The spike in memory prices began to threaten the production of printers
21.03.2021 [06:40],
Alexey Razin

The imbalance of supply and demand in the market for semiconductor components is no longer manageable. Market participants one by one report on the new consequences of the observed processes. Since the beginning of the year, the price of RAM in the instant transactions market has skyrocketed by 60%, and now printer manufacturers have begun to complain about the lack of memory.

Image Source: Nikkei Asian Review

As the Nikkei Asian Review explains, the instant deals market forms no more than 10% of the RAM segment, but the median price of 4 Gbit DDR4 chips since the beginning of the year has grown by 60% and reached its highest value since March last year. Such dynamics indicates a significant excess in demand of the supply opportunities. According to some market participants, the current situation could pose a threat to printer manufacturers who are forced to turn to the flash market for memory purchases.

Keeping Remote Working Trends Supports Demand for Home Printers. Usually manufacturers buy memory in large quantities every few months, but sharp changes in demand forced them to turn to the market for instant transactions. In February, memory manufacturers began to give preference to more profitable types of products, and there was a shortage of supply in the market for instant transactions.

The remaining 90% of the memory market belongs to the segment of long-term contracts, but even here in February prices increased by about 10% in sequential comparison. Many clients began to reinsure themselves and form orders with a significant margin in comparison with their real needs. While manufacturers increase production volumes, it will take some time. Memory vendors believe that improvement in the situation should be expected no earlier than June this year.

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