Weaker Consumer Demand in Q3 2024
According to TrendForce’s latest findings, the landscape for memory demand has significantly changed in the third quarter of 2024. Consumer demand remains lackluster, primarily influenced by global economic shifts and evolving purchasing patterns. Despite this downturn, AI servers have emerged as the primary driver of memory demand, creating a peculiar dichotomy in the market.
Shift Towards HBM Production
This period has seen a notable shift in memory production, with High Bandwidth Memory (HBM) beginning to replace conventional DRAM capacity. This transition has led suppliers to adopt a robust approach concerning contract price hikes. As HBM experiences an increase in production and application across various sectors, suppliers are determined to maintain advantageous pricing strategies.
Forecast for Q4 2024
Looking ahead, TrendForce has forecasted that memory prices will experience a significant slowdown in growth for the fourth quarter of 2024. Conventional DRAM prices are expected to rise only between 0-5%. However, the projected increase in the average price of overall DRAM—at 8-13%—is primarily propelled by the growing share of HBM. This indicates a marked deceleration compared to previous quarters, highlighting the ongoing adjustments in a transitioning market.