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Samsung Electronics and SK Hynix saw their mobile DRAM revenues decrease 6.3% and 2.8%, respectively, on quarter in the first quarter of 2017. Despite the revenue drops, their combined share of the global mobile DRAM market remained above 80% during the quarter, DRAMeXchange said.

Also show that at desktop market we see cartel agreement (btw same existed for CD and DVD drives, monitors, now work in HDDs sector).

Servers segment

TrendForce reports that the average contract price of server DRAM modules rose sequentially by nearly 40% and 10% respectively for the first and second quarter of 2017 due to tight supply. In the third quarter, the average contract price of 32GB server DRAM modules for first-tier customers is projected to arrive around US$260, while the average contract price of 32GB modules for second-tier customers may be higher than that threshold. The latest forecast by DRAMeXchange indicates that the average sequential price increase for server DRAM modules in the contract market for the third quarter will be in the range between 3% and 8%.

Prosperity, stability, capitalism.

August quotes for RAMs used in VGA graphics cards have risen to US$8.50, up by 30.8% from US$6.50 in July. Both RAM industry leaders Samsung Electronics and SK Hynix have allocated part of their VGA RAM production capacities to producing memories for servers and handsets, fueling the price rally.

Following the shift of part of its RAM capacity from the graphics card segment to the server segment, currently the server RAM accounts for 27% of Samsung's overall RAM capacity, up significantly from 12% originally.

Back to normal DRAM

PC DRAM Contract Price Rose by Over 10% Sequentially and Global DRAM Revenue Increase by 16.9% Sequentially in Second Quarter

http://www.dramexchange.com/WeeklyResearch/Post/2/4752.html

Nothing good in sight

The three remaining major DRAM suppliers—Samsung, SK Hynix, and Micron—are each currently enjoying record profits from their memory sales. For example, Micron reported net income of $1.65 billion on $5.57 billion in sales—a 30% profit margin—in its fiscal 3Q17 (ending in May 2017). In contrast, the company lost $170 million in its fiscal 4Q16 (ending August 2016). A similar turnaround has occurred at SK Hynix. In 2Q17, SK Hynix had a net profit of $2.19 billion on sales of $5.94 billion—a 37% profit margin. In contrast, SK Hynix had a net profit of only $246 million on $3.39 billion in sales one year ago in 2Q16.

http://www.icinsights.com/news/bulletins/The-Adversarial-Relationship-Of-The-DRAM-User-And-Producer-Continues/

Some final results for 2017 year

• YoY growth in dollars - 74%
• it is largest number since 1994
• Average price of DRAM chip rise is 77% YoY

So we actually witness cartel behavior.

DRAM contract prices are forecast to rise about 10% on average sequentially in the fourth quarter of 2017. "Most PC-OEMs have concluded negotiating their contract prices with DRAM suppliers for this fourth quarter," said Avril Wu, research director of DRAMeXchange. "Contracts with first-tier DRAM suppliers show that the prices of PC DRAM modules have now risen above US$30 and maintained around US$30.5 on average, amounting to a 7% hike from the third quarter. This price increase is mainly attributed to the influence of the booming mobile DRAM market, which is in turn fueled by the limited product supply and the releases of flagship smartphones during the traditional busy season of this year's second half."

"Depending on the capacity specifications, prices of mobile DRAM products could go up by 10% to 20% in the fourth quarter compared with the third. As for the server DRAM market, strong demand during the fourth quarter also will push up contract prices of memory modules by 6% to 10% from the previous three-month period."

And some now fight to keep prices up

Micron has filed a lawsuit with a federal court in the North California District accusing UMC and JHICC of copying its DRAM trade secrets, marking the first time for Micron to extend its legal battle across the Taiwan Straits in safeguarding its DRAM IPs. In the past, such legal cases would usually target Taiwan semiconductor players.

Taiwan-based DRAM solutions provider Nanya Technology has also filed a lawsuit against two of its former employees, charging them with stealing the firm's technology information before joining a China DRAM maker.

All this guys with their patents must be prosecuted and penalized such that no one else will try to impose them again.

Coupled with the climbing prices of mobile DRAM over the past year and a profit squeeze, major brands have adjusted their production plans and deferred restocking of materials since mid 4Q17. Some key components including mobile DRAM have excess inventory. In 1Q18, the traditional off-season, smartphone vendors are expected to decrease the demand, resulting in a mere 3% rise of the contract prices.

https://www.dramexchange.com/WeeklyResearch/Post/2/4891.html

Bolstered by robust demand from datacenter and smartphone sectors, the global production value of the DRAM industry is estimated to surge over 30% to US$96 billion in 2018, and price quotes are expected to rise by 5-10% in the first half of the year, according to industry sources.

Recent price chart