Memory Industry Set to Achieve Record Revenue in 2025 as Prices Soar and HBM & QLC Gain Traction

The memory industry is projected to experience significant growth in the coming years, driven by increased demand for high-value products like HBM and DDR5, but rising prices may pose challenges for manufacturers and consumers.

Projected 75% increase in DRAM revenue in 2024
Projected 77% increase in NAND Flash revenue in 2024
Projected 29% increase in NAND Flash revenue in 2025

Get ready for some major growth in the memory industry! According to TrendForce’s latest report, both DRAM and NAND Flash revenues are expected to soar in the coming years. We’re talking about a whopping 75% increase for DRAM and an impressive 77% jump for NAND Flash in 2024 alone. And the good news doesn’t stop there – these numbers are projected to keep climbing in 2025, with DRAM predicted to grow by 51% and NAND Flash by 29%, reaching record highs.

So, what’s driving this surge in revenue? Well, it’s a combination of factors. First off, there’s the increased demand for memory chips. As technology continues to advance, we’re seeing a rise in high-value products like High Bandwidth Memory (HBM), which not only boosts the demand for DRAM but also raises its average price. In fact, TrendForce estimates that HBM will contribute to 5% of DRAM bit shipments and a staggering 20% of revenue in 2024. That’s no small feat!

But that’s not all – the evolution of general DRAM products, restrained capital expenditures by manufacturers, and the recovery in server demand are also playing a significant role in driving DRAM revenue growth. And let’s not forget about the impact of high-value products like DDR5 and LPDDR5/5X. These babies are expected to raise the industry’s average price even further. TrendForce predicts that DDR5 will account for a whopping 40% of server DRAM bit shipments in 2024, increasing to 60-65% in 2025. And as for LPDDR5/5X, they’re expected to contribute 50% and 60% of mobile DRAM bit shipments in 2024 and 2025, respectively. Talk about making an impact!

Now, let’s shift our focus to NAND Flash. TrendForce projects that NAND Flash revenue will reach an impressive $67.4 billion in 2024, a staggering 77% increase from the previous year. And the growth doesn’t stop there – in 2025, driven by the rise of high-capacity QLC enterprise SSDs and the adoption of QLC UFS in smartphones, NAND Flash revenue is expected to reach a whopping $87 billion, a 29% increase from the previous year. It’s safe to say that the future is looking bright for NAND Flash.

Speaking of QLC, it’s set to make a big splash in both the NAND Flash and smartphone markets. TrendForce estimates that QLC will contribute to 20% of NAND Flash bit shipments in 2024, with this share expected to increase even further in 2025. And in the smartphone world, QLC is gradually making its way into the UFS market, with some Chinese smartphone manufacturers planning to adopt QLC UFS solutions starting in Q4 2024. Apple is also expected to jump on the QLC bandwagon and incorporate it into iPhones by 2026. Looks like QLC is here to stay!

Now, with all this growth in the memory industry, it’s no surprise that manufacturers are ready to invest big bucks. TrendForce reports that capital expenditures in both the DRAM and NAND Flash industries are expected to increase by 25% and 10%, respectively, in 2025. This expansion of memory production will undoubtedly boost demand for upstream raw materials like silicon wafers and chemicals. However, it’s not all sunshine and rainbows – rising memory prices will also increase the cost of electronic products. This could pose a challenge for ODM/OEM companies as they try to pass on these costs to retail prices without sacrificing profit margins. It may even dampen end-user sales and lead to a decline in demand. So, there are some potential roadblocks ahead.

All in all, the future looks incredibly promising for the memory industry. With soaring revenues and a growing demand for high-value products, it’s safe to say that the memory market is on the rise. But as with any industry, challenges will arise along the way. The key will be finding a balance between meeting the increased demand and managing the rising costs. Only time will tell how this story unfolds, but one thing’s for sure – the memory industry is definitely one to watch!

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Technology Explained

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.

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LPDDR5: LPDDR5 is a type of computer memory technology that is used in many modern computers. It stands for Low Power Double Data Rate 5 and is the latest version of the LPDDR memory standard. It is a type of dynamic random access memory (DRAM) that is designed to be more power efficient than its predecessors. It is used in many modern laptops, tablets, and smartphones to provide faster performance and longer battery life. LPDDR5 is also used in some high-end gaming PCs and workstations to provide faster loading times and smoother gaming experiences. It is also used in some servers and data centers to provide faster data processing and storage.

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NAND: NAND technology is a type of non-volatile memory that is used in many computer applications. It is a type of flash memory that is used to store data in a non-volatile manner, meaning that the data is not lost when the power is turned off. NAND technology is used in many computer applications, such as solid-state drives, USB flash drives, digital cameras, and memory cards. It is also used in many embedded systems, such as cell phones, tablets, and other consumer electronics. NAND technology is a reliable and cost-effective way to store data, making it a popular choice for many computer applications.