DRAM & NAND Market Update: Headwinds Expected from COVID-19 – LIVE MARKET BRIEFING

Prior to COVID-19 outbreak, 2020 was shaping up to be a strong recovery year for the DRAM and NAND markets, with both expected to emerge from downturns that had persisted through much of the past two years. Although the situation surrounding the pandemic remains extremely fluid, it will certainly be a headwind to any recovery. Relative to our most recently published forecast (Feb. 2020) market expectations have been reduced sharply as the spread of the virus has gripped the world.

The demand impacts of COVID-19 are a mixed bag. Some markets, including datacenter and PC, have experienced initial increases in demand as many have transitioned to working from home and online services (e.g. Netflix and Amazon) have seen a dramatic spike in demand. Some segments, however, have witnessed steep declines in demand. Smartphones, for example, have seen shipments drop precipitously as consumers stay home and retain discretionary income. While supply-side reductions are expected as the memory suppliers delay expansion plans and curtail technology investments, it is unlikely to be enough to offset lower demand.

This Live Marketing Briefing will examine the changes to our DRAM and NAND market outlooks in the context of our prior forecast and what we see as the most likely outcomes during these very uncertain times.

Related monitors: