After contract prices of DRAM products turned downward sharply in 4Q18 by 10% QoQ, major DRAM manufacturers have tried to offset fall in prices by slowing down capacity expansion in 2019, as the demand outlook for PCs, servers, smartphones, and other end consumer products remains weak, reports DRAMeXchange, a division of TrendForce.
DRAMeXchange points out that, manufacturers’ capex plans are normally the most relevant indicators for their actual bit output. In 2019, the total capital expenditure for DRAM production is forecast at about $18 billion, an annual decrease of 10%. This CAPEX is at the most conservative investment level in recent years.
