DRAM Manufacturers Slowly Resume Production, Minimal Impact Expected on Q2 DRAM Output

The DRAM industry has shown resilience after the recent earthquake, with minimal disruptions and a strong recovery, despite some damage and necessary inspections.

Minimal disruptions and strong recovery in the DRAM industry following the earthquake
Quick return to full operational status by major DRAM producers
Manageable 1% impact on DRAM production in the second quarter

In the aftermath of the recent earthquake on April 3rd, the DRAM industry has proven its resilience, with minimal disruptions and a strong recovery. TrendForce, a leading market research firm, conducted a thorough analysis of the earthquake’s impact on the sector and found that despite some damage and necessary inspections, the overall effect has been limited thanks to the preparedness of the facilities.

Major DRAM producers, including Micron, Nanya, PSMC, and Winbond, quickly returned to full operational status by April 8th. Of particular note is Micron’s progress in processes, such as the 1alpha and 1beta nm technologies, which are expected to revolutionize DRAM bit production. In contrast, Taiwanese manufacturers are still utilizing older processes, contributing less to the overall output.

TrendForce estimates that the earthquake will have a manageable 1% impact on DRAM production in the second quarter. While this impact may seem minimal, it is important to note that it also limits the potential benefits for the industry. As a result of the earthquake, both contract and spot DRAM markets experienced a temporary halt in quotations. While spot market quotations have largely resumed, contract prices have not fully recovered.

Following the earthquake, major players like Micron and Samsung temporarily ceased issuing quotes for mobile DRAM, with no updates provided as of April 8th. However, SK hynix took a proactive approach by resuming quotations for smartphone customers on the day of the earthquake. Their proposed price adjustments for Q2 mobile DRAM are relatively moderate compared to other suppliers, which is expected to influence pricing strategies across the industry. TrendForce predicts a seasonal contract price increase of approximately 3-8% for Q2 mobile DRAM.

In terms of server DRAM, Micron’s advanced manufacturing processes were primarily affected by the earthquake. This could potentially lead to higher final sale prices for Micron’s server DRAM, although further observation is needed to determine the exact direction of future prices. On the HBM (High Bandwidth Memory) front, Micron’s production in Hiroshima, Japan, remained unaffected by the earthquake, ensuring stable supply levels and unchanged prices.

In the spot market, some module makers like Kingston and Adata have resumed quoting without adjusting prices upwards. This indicates that the earthquake’s impact on prices has been limited. While there may be some potential for upward pricing in DDR3 due to its scarcity, the abundance of inventory for DDR4 and DDR5, coupled with tepid demand, suggests that any price elevations caused by the earthquake are expected to normalize quickly.

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Background Information

About Adata: Adata is a well-established Taiwanese brand that specializes in memory and storage solutions, including RAM modules, solid-state drives (SSDs), and USB flash drives. They are recognized for their reliable and high-performance storage products, catering to both consumer and industrial needs.

About Kingston: Kingston Technology, founded in 1987, is a respected American company specializing in memory and storage solutions. They offer a diverse range of products, including memory modules, solid-state drives, USB drives, and more. Kingston is known for its reliable and high-performance storage solutions.

About Samsung: Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

About SK hynix: SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications.

Technology Explained

DDR3: DDR3 (double data rate 3) is a type of computer transfer technology that is commonly used in modern computers. It is the successor to the original DDR and DDR2 technologies used to communicate data between the main memory and the CPU (central processing unit). It works by allowing two sets of information to be sent per clock 'tick', which helps to boost overall speed and efficiency. With DDR3, the computer industry has seen a significant increase in speed and performance. DDR3 is used in a variety of computer applications, from gaming to intense data processing and artificial intelligence tasks. It is used in PCs, laptops, and Macs, as well as in tablet technologies like the iPad. It also helps to provide better video streaming and signal data processing in networking. DDR3 is an essential and versatile technology in the modern computer industry.

DDR4: DDR4 is a generation of Double Data Rate (DDR) dynamic random access memory (RAM) technology. It is a type of RAM that utilizes a higher clock frequency and is more power-efficient than its predecessors. As a result, it is capable of processing data more quickly than other RAM in the computer industry. Its increased speed and power efficiency are beneficial for applications such as gaming, rendering, and machine learning. It is designed for high-performance computing and enables faster access to stored information, resulting in better overall performance for the user. Furthermore, because of its low voltage requirements it requires less power consumption, making it an attractive option for many computer systems. DDR4 is set to become the primary RAM in most computer systems as the industry transitions away from its predecessors.

DDR5: DDR5 (Double Data Rate 5) is the next generation of memory technology for the computer industry. It is a modern day improvement on earlier DDR technologies, with faster speeds, greater bandwidth and higher capacities. DDR5 enables higher resolution, seamless gaming experiences and faster data transfer rates, making it an ideal choice for high-performance computing and 4K gaming. With its greater RAM compatibility, DDR5 provides faster buffering times and raised clock speeds, giving users an improved overall work system. DDR5 is also optimized for multi-tasking, allowing users to multitask without experiencing a significant drop in performance, increasing the productivity of digital tasks. As an ever-evolving technology, DDR5 is paving the way for the computer industry into a new and powerful era.