TECH

NAND and DRAM memories may go up in price

Samsung and Micron have already made their statements about the impact of the epidemiological situation in China Xi’an on the activities of their own companies. In this city, Samsung produces solid state memory and Micron produces RAM. Third-party experts estimate that local companies account for 12% of NAND worldwide and 7% of DRAM. The block will last for at least three weeks.

Wedbush estimates that Samsung's Xi’an facilities produce up to 40% of its total NAND memory. Short-term interruptions in production, in fact, are to some extent beneficial to suppliers, as this factor will increase prices, which have recently been trying to decrease. Analysts at Citi estimate that Samsung's Xi’an facility accounts for 12% of global solid-state memory chip output. In the case of the launch of DRAM at the local company Micron, it accounts for 7% of the world market.

Rising memory prices will also help to strengthen manufacturers' stock prices, but now Western Digital Corporation, which has not suffered from the events in Xi’an, is in the most advantageous position. The company's share price managed to rise 5.2% to $66.13 a share, while Micron Technology shares rose 3.5%. The company WDC only produces solid-state memory, and as the Xi’an crisis will affect this market segment more strongly, the market reaction turned out to be more noticeable precisely in relation to the shares of this manufacturer. 

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