Samsung, SK Hynix, and Micron will prohibit customers from stockpiling and hoarding memory to a large extent. This should stabilize prices in the medium term.
The three major DRAM memory manufacturers are taking joint action to curb the rise in prices. Samsung, SK Hynix, and Micron will be scrutinizing their customers’ orders more closely to prevent parties from purchasing and hoarding large quantities of memory.
As prices continue to rise, it is advisable for individual customers such as laptop manufacturers to buy as much DRAM as possible at a certain price point. After all, a new order a month later would already be more expensive. If all manufacturers reason this way, everyone orders more than necessary, causing demand to exceed supply even more, and the price to rise more sharply than necessary.
Like COVID toilet paper
For those looking for an analogy: think of the availability of toilet paper at the start of Covid. The stock was sufficient, but the artificially high demand, driven by hoarders, caused supply problems.
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By banning hoarding, there is a chance that the high price of DRAM will more quickly affect end products in the short term. In the medium term, a more realistic demand should ensure that the price stabilizes more quickly.
With this measure, the three manufacturers are making a responsible decision in the interest of the market. After all, high prices are not a disadvantage for them.
The move is a rare attempt by the DRAM specialists to address the shortages. HBM memory for AI, which rolls off the same production line, remains more attractive for them to produce. The focus is still there, which weighs on the availability of DRAM for laptops and smartphones. Samsung, SK Hynix are not immediately planning to postpone orders for some major AI parties.