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Memory chip producers stop pricing talks after Taiwan earthquake

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Micron (NASDAQ:) has paused DRAM pricing discussions with customers in the wake of the devastating Taiwan earthquake, industry research firm TrendForce said in a Wednesday report.

Micron, which has a significant DRAM production presence in Taiwan, opted to reassess the impact of recent disasters before proceeding with negotiations for the second quarter of 2024 contract prices.

Similarly, Samsung (KS:) and SK Hynix, despite not having DRAM production facilities in Taiwan, have also decided to suspend their pricing.

“Despite the earthquake, the spot market for DRAM and NAND Flash memory had been showing signs of weak demand for several weeks,” TrendForce’s report says.

“Therefore, although Micron and Nanya experienced shutdowns, the ample supply has prevented significant price fluctuations. The overall price increase was minimal, with purchasing enthusiasm remaining low,” it added.

According to TrendForce, this decision may result in a minor short-term rise in DRAM spot prices, though the sustainability of this trend remains doubtful amid ongoing weak demand.

The pause in pricing by DRAM suppliers and module factories is seen as a cautious move in response to the recent earthquake, highlighting the industry’s “cautious approach in the aftermath of the earthquake,” TrendForce said.

MU shares fell 0.8% in premarket trading Wednesday, while SK Hynix and Samsung dropped 3.8% and 1% in Korea.



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