TrendForce’s latest investigations have revealed the U.S. economy outperformed market expectations in December 2024, with non-farm payrolls and the Manufacturing Purchasing Managers’ Index (PMI) delivering strong results. Consequently, the Federal Reserve may significantly scale back the frequency of rate cuts in 2025, prolonging a high-interest-rate environment. This scenario could dampen consumer spending and undermine corporate confidence in investment and expansion. TrendForce estimates that MLCC shipments will reach 1,146.7 billion units in 1Q25, marking a 3% QoQ decline.
TrendForce’s latest investigations reveal that geopolitical dynamics are accelerating the formation of the “China for China” supply chain, driven by China’s vast domestic market. This trend is particularly evident in the automotive sector.
According to the latest research from TrendForce, the value of the entire server industry is estimated to total US$306 billion in 2024. Within this total, the industry value specifically related to AI servers is estimated to be around US$205 billion, showing stronger growth compared with the industry value related to standard servers. Looking ahead to 2025, the value of the AI server segment is expected to rise to US$298 billion due to persistently high demand and a higher ASP for this product category. Additionally, AI servers are forecasted to account for over 70% of the total value of the entire server industry in 2025.
TrendForce’s latest investigations reveal that NAND Flash suppliers are expected to face mounting inventory levels and deteriorating demand for orders in 1Q25, with average contract prices forecast to decline by a QoQ of 10-15%. While wafer price declines are expected to narrow, enterprise SSD orders may offer some buffer against further price erosion. Client SSD and UFS products, on the other hand, are likely to experience continued price drops due to weak sales of consumer electronics and conservative buyer sentiment.
TrendForce’s latest investigations reveal that the DRAM market is expected to face downward pricing pressure in 1Q25 as seasonal weakness aligns with sluggish consumer demand for products like smartphones. Additionally, early stockpiling by notebook manufacturers—over potential import tariffs under the Trump administration—has further exacerbated the pricing decline.
