Driven by soaring demand for artificial intelligence (AI), average monthly prices for memory semiconductors, including DRAM and NAND flash, have reached record highs once again.

As production capacity concentrates on server products, a shortage in legacy memory supply is expected to lead to further price increases centered on PC DRAM in the third quarter.

According to market research firm DRAMeXchange on the 3rd, the average fixed transaction price for PC DRAM general products (DDR4 8Gb 1Gx8) in July surged 14.3% from the previous month (21 dollars) to 24 dollars. This represents more than an eightfold increase compared to June 2016 (2.9 dollars) when the survey began.

The DDR4 average price has reached a new all-time high following consecutive price increases since April 2025.

▲ Production Shift to Server DRAM... PC Memory Expected to Rise Up to 20% in Q3

The sharp surge in DRAM prices is primarily attributed to production line shifts driven by a surge in server memory demand from cloud service providers (CSPs).

Major DRAM manufacturers are reducing PC DRAM supply to increase high-value-added server and AI product supplies, intensifying supply shortages in the market.

Taiwan-based market research firm TrendForce stated, "As DRAM companies plan to reduce PC DRAM supply next year, tight supply conditions continue," and predicted that "as a result of supply shortages, fixed transaction prices for PC DRAM in the third quarter will rise an additional 15-20% compared to the previous quarter."

[AFP/Yonhapnews provided]

▲ NAND Flash Continues 19-Month Streak... SLC Supply Shortage Causes 50% Price Spike

The NAND flash market has also maintained its upward trend as inventory demand overlaps in AI edge computing, next-generation smart vehicles, and industrial automation sectors.

The average fixed transaction price for general NAND products for memory cards and USB (128Gb 16Gx8 MLC) in July rose 4.3% from the previous month to 30.1 dollars, maintaining a 19-month consecutive increase.

In particular, distinct price differentiation by fine process and product category has emerged in the NAND market.

As memory suppliers concentrate production capacity on high-stacked 3D NAND and advanced processes, a severe shortage of legacy single-level cell (SLC) products has occurred. Consequently, the SLC average selling price (ASP) surged 35-51% compared to the previous month, a rare phenomenon.

▲ MLC Growth Moderates... Deepening Polarization Between Legacy and Advanced Products

Meanwhile, multi-level cell (MLC) NAND has seen its growth rate remain between 4-8% as accumulated price increases over the past year have placed a cumulative cost burden on purchasing customers. The growth momentum is diverging by product category as market purchasing power reaches its limits.

TrendForce analyzed, "SLC will maintain its upward trajectory in the third quarter due to severe supply shortages, but MLC's price increase will gradually moderate," and added, "amid the AI-driven semiconductor supercycle, price polarization due to supply imbalances between advanced and legacy processes is expected to persist for some time."