Prices for memory are updated hourly, and small manufacturers are almost excluded from the supply market

A Brief Overview of the Memory Market Situation

1. Volatile Demand and Prices

The spot market for memory chips (DRAM and NAND) is now changing prices almost every minute. This makes purchasing difficult for small manufacturers.

2. Buyer Hierarchy

- About 100 large companies capture nearly all available memory volume.
- More than 190,000 small firms are left without the ability to purchase because their demand cannot be met at current prices and supply terms.

3. Position of “Large” Clients

Cloud giants, automotive manufacturers, and leading smartphone brands (Apple, Samsung) are less sensitive to rising memory costs. Suppliers prioritize serving them to maintain long‑term relationships.

4. Consequences for Small Manufacturers

- The inability to prepay leads to market exit: small companies simply cannot afford current prices.
- Many are forced to cut production and shift into a “survival mode,” reducing overall demand, but excess supply is still not present.

5. Price Growth Forecasts

- TrendForce predicts almost double the contract price for DRAM in the current quarter, and at least 1.5× for NAND.
- In Q2, DRAM prices could rise another 70 %.
- IDC believes memory shortages will persist until the end of 2027.

6. Industry Impact

- PC and smartphone manufacturers face higher memory costs.
- The smartphone market is expected to shrink by 13–31 % by year‑end.
- Small computer companies will suffer the biggest blow, as they will struggle to procure memory more favorably than larger competitors.

Conclusion:

Small players are forced out of the memory market due to sharp price increases and limited supply volumes, while large brands continue to secure access to necessary resources. Forecasts indicate that the shortage situation will last several more years, with prices continuing to rise.