Micron will raise prices by 20%-30% and suspend quotations!
Micron Technology recently issued a notice to its channel partners, announcing a 20%-30% price increase for its memory products. Effective September 12th, all pricing for all DDR4, DDR5, LPDDR4, and LPDDR5 memory products will be suspended, with all agreed customer prices canceled for one week. According to supply chain sources, Micron executives, observing customer forecasts of significant supply shortages, urgently suspended all product quotes to allow for subsequent price adjustments.
Previously, SanDisk announced a price increase of over 10% for its memory products, kicking off a new round of price increases in the memory chip industry. Market analysis indicates that cloud service providers are increasing capital expenditures by $18 billion in fiscal 2025, directly driving demand for memory chips in the AI sector. Citi analysts expect Micron to provide guidance significantly exceeding market expectations in its fiscal 2025 fourth-quarter earnings report, due on September 23rd. Analysts believe that both DRAM and NAND sales and prices will rise, with the continued recovery in the memory industry primarily driven by capacity constraints and higher-than-expected demand.
Analysts point out that large additional orders for NAND enterprise solid-state drives from multiple hyperscale cloud vendors are shifting NAND supply from the consumer market to the enterprise market. According to TrendForce data, NAND Flash wafer and client SSD prices are both expected to rise in the second quarter of 2025, with wafer prices increasing by 10% to 15% month-over-month and client SSD prices increasing by 3% to 8%. CFM Flash Market notes that the DRAM price index has risen by approximately 72% in the past six months, indicating a surge in NAND price increases, and predicts that enterprise storage prices will rise in the fourth quarter.
Micron has decided to discontinue development of mobile NAND products, including UFS 5.0, and gradually withdraw from the mobile NAND market, creating development opportunities for domestic manufacturers.
The main reason for this price increase and quotation suspension is supply shortages. This is due to manufacturers shifting traditional DRAM production capacity to higher-profit products and discontinuing production of older processes such as DDR4 and LPDDR4X, resulting in an imbalance between supply and demand. Furthermore, increasing demand for server stocking and a tight supply of HDDs in North America are driving demand for enterprise NAND. This event could propel the memory chip industry into a new cycle of price increases. For Micron Technology, this is expected to boost its performance, leading analysts to raise their target prices. For the industry, limited production capacity and recovering demand will continue to drive price increases. For investors, the market is optimistic about the outlook for memory chips. Furthermore, Micron's exit from the mobile NAND market presents development opportunities for domestic manufacturers.
