Since memory modules are the last parts needed in a build, customers are pivoting from buffering stock and resorting to just-in-time to avoid overstock of parts they don’t need. This has resulted in the downward trend in demand in back-to-back quarters, which then reflects in the erosion of the overall pricing of memory modules.
Supply has been chasing demand for quite some time now across multiple commodity groups, and this isn’t expected to let up anytime soon. Production lines are anticipated to be saturated in Q2.
Since memory modules are the last parts needed in a build, customers are pivoting from buffering stock and resorting to just-in-time to avoid overstock of parts they don’t need. This has resulted in the downward trend in demand in back-to-back quarters, which then reflects in the erosion of the overall pricing of memory modules.
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The impact of the Russia-Ukraine conflict is anticipated to affect the global supply chain as both countries source materials for semiconductor production.