TAIPEI – TrendForce today raised its forecasts for DRAM price hikes for the second quarter to 18 to 23%, up from its prior estimate of 13 to 18%. Actual increase in prices of various DRAM product categories will depend on the production capacities allocated to the respective products by DRAM suppliers, the research firm noted.

The increase in prices is attributed to growing notebook computer production. Major PC OEMs are now aggressively expanding their production targets.

As second quarters are generally peak seasons for notebook production, PC ODMs are now estimated to increase their quarterly production of notebook computers about 7.9% sequentially during the quarter.

Vaccination rates remain relatively low across the globe, meaning work from home and distance education are likely to persist and create continued demand for notebook computers, thereby further expanding the hike in PC DRAM prices, says Trendforce.

DRAM Suppliers will enjoy increased bargaining power in price negotiations, as server DRAM prices are expected to increase 20-25% sequentially during the period.

Server DRAM procurement in the second quarter has benefitted from the positive turn in the view of enterprises toward IT investments, as well as the stronger-than-expected demand related to cloud migration. There was already a supply gap in the first quarter, and these developments will further drive up demand in the second quarter. Hence, difficulty has increased for buyers and suppliers in reaching an agreement on price.

Compared to the previous forecast of nearly 20%, TrendForce is now expecting server DRAM contract prices to increase 20-25% sequentially.

DRAM suppliers and major PC OEMs are currently negotiating contract prices for the second quarter.

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