According to Taiwan media reports, market sources revealed that Micron has proposed to most customers to increase their Q2 product quotations, with an increase of more than 20%. Price negotiations are still ongoing.

On April 3, a 7.3-magnitude earthquake and multiple larger aftershocks occurred in the waters of Hualien County, Taiwan Province, which also had a considerable impact on the semiconductor industry. It is reported that Micron's DRAM production in Taiwan accounts for approximately 60% of the company's overall DRAM production capacity.

Micron took the lead in suspending quotations after the earthquake. Micron also announced that it will further evaluate the production capacity and supply situation caused by the earthquake, and then discuss the supply situation with customers. SK Hynix and Samsung also followed closely behind. Although these two major suppliers do not have DRAM production in Taiwan, they also hope to wait and see the market outlook before taking action.

Industry insiders say that after such a strong earthquake, wafer factories will generally suspend or suspend at least some of their production lines, which will inevitably lead to tight supply.

After experiencing sustained low prices in the past two years, DRAM memory manufacturers are deliberately controlling production capacity, hoping to restore prices as soon as possible. The price increase trend was already obvious before the earthquake.

The current inventory levels of memory module manufacturers are generally low. With limited upstream production capacity, they will definitely increase procurement expenditures. Downstream customers such as server manufacturers will also take the opportunity to stock up, which will further drive up prices.

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