Connect with us

Trends

Memory channel sales in China sluggish

Memory module houses and channel distributors are less optimistic about the outlook for China’s channel sales in the third quarter of 2021, despite an ongoing rally in contract market prices, according to industry sources.

DRAM and NAND flash contract prices are set to continue their rally but at a slower pace in the third quarter, coupled with continued correction in spot market prices. A crossover point where contract prices approach and exceed spot prices may take place in the second half of this year, the sources said.

Memory module firms had already stockpiled chips, which made a positive contribution to their profitability in the first half of 2021. However, channel sales in China were a disappointment, and have remained sluggish, the sources indicated.

Besides, with China cracking down on the cryptocurrency Chia that relies on HDD or SSD for mining, demand for cryptomining has seen a substantial slowdown impacting further the overall channel sales in China during the third quarter, the sources said.

The gap between contract and spot prices will be narrowed further in the second half of 2021, with the possibility of contract prices exceeding spot prices, according to the sources. DigiTimes

Click to comment

You must be logged in to post a comment Login

Leave a Reply

error: Content is protected !!