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A substantial slowdown in cryptomining demand should only have a limited impact on the overall memory market conditions as fundamental demand remains significant, according to sources at memory module makers.
With China cracking down on the cryptocurrency Chia that relies on SSD or HDD for mining, demand for large-capacity SSDs was significantly undermined at the end of the second quarter, the sources noted.
SSDs with storage capacity of 1TB or higher enjoyed surging demand from the cryptomining segment in May and orders for 512GB and 256GB SSDs also rose. But the momentum has waned with China’s crackdown on digital currencies, the sources said.
The sources pointed out that many SSD vendors have already turned to supply their large-capacity devices to the enterprise storage market. Since upstream memory makers are unwilling to cut their quotes, DRAM and NAND flash prices are both expected to see price increases in the third quarter.
Despite China’s weak demand for memory since early 2021, demand from the US remains robust as the stay-at-home economy there will last.
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