DRAM prices are set to stabilise, if not increase, following a period of price decline lasting from October 2014 to June 2016, according to TrendForce's DRAMeXchange.

The analyst says DRAM contract prices will see an exchange of around 4-8% on Q3 2016, an improvement after a period with average DDR3 4GB prices plunging by -62%. The reason for such an increase? Growing demand from smartphone and server makers, since the amount of DRAM in both product categories is on the up. As such, excess capacity is being consumed.

On the other hand PC DRAM demand remains in a slump, particularly since Windows 10 licensing schemes setting fees according to system specs discourage the increase of memory content per PC.

A tight NAND flash supply is also helping DRAM price rebound-- and one has to keep in mind NAND flash and DRAM work together in virtually all devices. Yet another factor is a sudden power outage in a Samsung memory fab in Xian, China, cutting a day's worth of NAND flash and DRAM supply for memory module makers, leading to an obvious price increase.

In other DRAM-related news Micron is still looking for a form of partnership following fiscal Q3 losses. The company had caught the interest of Chinese conglomerate Tsinghua Unigroup, but the deal was blocked by the Committee on Foreign Investment in the US (CFIUS).

Go DRAM Contract Prices Stabilised in June and are Expected to Rise in Q3 (DRAMeXchange)