Despite a 90-day grace period for most regions when it comes to U.S.-imposed tariffs and then reciprocal tariffs from affected countries, buyers and suppliers are rushing to complete transactions and shipments to boost stockpiles.
The news comes from a report from market research firm TrendForce that found companies are looking to mitigate future policy risks by ramping up buying of electronic components, especially memory buyers that are actively raising DRAM and NAND flash inventory levels.
Already tariffs are expected to hit semiconductor equipment makers hard while also curbing consumer electronics consumption as prices are expected to increase substantially. While semiconductors were initially not included in the Trump Administration tariffs, it is under investigation right now by the administration with the expectation that tariffs will be implemented in the coming weeks.
Proactive stockpiling
The result of this proactive stockpiling, contract price increases for both DRAM and NAND flash are expected in the second quarter, TrendForce said.
The surge is likely to be short-lived with exporters and demand from U.S.-based brands will largely frontload the first half of 2025. The second half of the year will depend on the demand/supply dynamics as well as pricing trends as tariffs go into effect globally, the company said.
