DRAM Prices Surpass TSMC's Latest Wafer Costs Amid AI Demand

Kernel Insight, a semiconductor analysis firm, reports that the demand for artificial intelligence is driving DRAM prices to historical highs. The unit area sales value of the latest process DRAM has exceeded the wafer prices of Taiwan Semiconductor Manufacturing Company (TSMC)'s 2-nanometer (N2) and 3-nanometer (N3) processes. TSMC's 300mm N3 wafer is priced at approximately $20,000, while the N2 wafer costs around $30,000, translating to nominal prices of about $0.283 and $0.424 per square millimeter, respectively.

In contrast, the latest DRAM technologies show significantly higher unit area values. The 1y DRAM is priced at $0.329 per square millimeter, the 1z at $0.410, and the 1b at $0.654 per square millimeter, with the latter being more than 50% higher than the N2 wafer price. These figures are based on a price of $1.50 per gigabit and generational bit density calculations, indicating a strong market for advanced memory solutions.

The analysis highlights that TSMC's wafer prices reflect the foundry costs paid by customers, while DRAM prices represent the total sales potential of finished products, excluding advanced packaging costs. Additionally, the pricing metrics for DRAM are based on small spot prices, which differ from the long-term contract prices set by major manufacturers such as Samsung Electronics, SK Hynix, and Micron. Recent trends indicate that non-public fixed trading prices have strengthened, suggesting that the leading margin of wafer unit prices for memory manufacturers may be even greater than currently reflected in spot prices.

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Source: KLEA News