DRAM prices surge as firms prepare for trade tariff impact
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Usually, when building a PC, RAM is not considered to be much of an expense. When compared to the staggering cost of a modern graphics card or high-end CPU, the cost of RAM is peanuts by comparison. This state of affairs might not continue indefinitely, however, according to a new report.
A report by BusinessKorea identified a surge in the average prices of memory semiconductors used in DRAM and NAND flash storage. The price surge covered a period of two months, encompassing April and May.
The data was obtained from market research firm DRAMeXchange, which showed a 22.22% price rise in April, followed by a 27.27% rise in May. This increase is believed to be related to the US government’s announcement of reciprocal tariffs. The 90-day grace period provided an opportunity for PC manufacturers to secure a suitable amount of inventory before the tariffs became active.
Another market research firm called TrendForce explained the reasons for the price increase, which essentially comes down to the laws of supply and demand:
“PC companies are increasing their memory stockpiles to take advantage of the 90-day tariff grace period. This movement has greatly increased demand for low-cost central processing units (CPUs) and corresponding DDR4 DRAM.”
TrendForce report
DDR4 and Flash storage affected
Similarly, prices for NAND flash storage, such as that used in USB memory sticks and memory cards, also saw a jump, up 4.84% in May compared to the previous month.
Previously, prices of DRAM and NAND flash storage semiconductors were on a generally downward trend. Prices of DRAM plunged during September and November of 2024, before settling into a stable price point for four months prior to this sudden upward surge.
It is unknown at this stage how this will affect the wider PC market, but further price increases are unlikely to be positive for consumers, particularly in the USA.
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