Server DRAM and HBM Propel 4Q24 Revenue Growth in the DRAM Sector

A Closer Look at the DRAM Market

TrendForce just dropped some eye-opening stats about the global DRAM industry. In the fourth quarter of 2024, revenue soared past a whopping

$28 billion

, marking a solid

9.9% quarter-over-quarter increase

. What’s fueling this growth? Well, it turns out that the rising contract prices for

server DDR5

and a surge in shipments of

HBM

(High Bandwidth Memory) played a significant role. This trend has allowed the top three DRAM suppliers to keep their revenue on the upswing, despite some mixed signals in the market.

The Ups and Downs of Pricing

While most contract prices across various applications have started to dip, there’s a silver lining. Major American Cloud Service Providers (CSPs) have ramped up their procurement of high-capacity server DDR5, which has helped maintain a bit of pricing momentum for server DRAM. But here’s the catch: as we head into the first quarter of 2025, the industry typically experiences a slow season. This means we can expect a decline in overall bit shipments from DRAM manufacturers.

PC OEMs and smartphone vendors are likely to keep working hard to clear out their inventories, which could lead DRAM suppliers to pivot and shift some of their focus back to server DDR5 production from DDR4 and HBM. However, as demand from CSPs begins to wane, we might see contract prices for conventional DRAM, as well as the combined prices of conventional DRAM and HBM, take a tumble in the upcoming quarter.

Samsung vs. SK hynix: The DRAM Duel

Now, let’s talk about the big players in the game. Samsung held onto its title as the top DRAM supplier, raking in an impressive

$11.25 billion

in revenue, which translates to a

5.1% QoQ increase

. However, it’s not all sunshine and rainbows—Samsung’s market share dipped slightly. The company faced challenges with bit shipments due to a decline in demand for LPDDR4 and DDR4, largely driven by inventory cuts in the PC OEM and smartphone sectors. Plus, they only began ramping up HBM shipments toward the tail end of 2024, which didn’t help their bit shipment volumes.

On the flip side, SK Hynix is making waves as the second-ranked company, reporting

$10.46 billion

in revenue—a remarkable

16.9% QoQ increase

. Their market share is now at

36.6%

, thanks to a surge in HBM3E shipments that more than compensated for the declines in LPDDR4 and DDR4 shipments.

And let’s not forget about Micron, which secured the third spot with

$6.4 billion

in revenue, up

10.8% QoQ

. Micron’s growth is largely attributed to expanded server DRAM and HBM3e shipments, allowing it to maintain a stable market share from the previous quarter.

Challenges for Taiwanese Manufacturers

However, not all players are riding high. Taiwanese DRAM manufacturers faced some tough times in 4Q24, reporting revenue declines due to weakening demand for consumer DRAM and fierce competition in the DDR4 market from Chinese suppliers. For instance, Nanya Technology saw its revenue drop to

$203 million

, a

19.3% QoQ decrease

, as demand softened and competition intensified. Similarly, Winbond reported a

22.4% QoQ decline

, bringing its revenue down to

$119 million

.

Even PSMC, primarily known for its consumer DRAM production, saw its revenue plummet by

37.9% QoQ

, landing at just

$11 million

. This drop was largely due to reduced wafer input volumes. Overall, PSMC’s revenue fell by

10% QoQ

, even when you factor in its Foundry service revenue, signaling a stable demand from foundry customers but a shaky outlook for consumer DRAM.

What Lies Ahead?

So, what does all this mean for the future of the DRAM industry? As we move into 2025, the landscape is shifting. With major players like Samsung and SK Hynix jockeying for position and Taiwanese manufacturers facing headwinds, it’s clear that the DRAM market is anything but static. Keeping an eye on pricing trends and shifts in demand will be crucial for anyone invested in this space. Will the top suppliers manage to maintain their momentum, or will the market’s ebb and flow lead to a shake-up? Only time will tell!

Background Information

---

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.

  

Latest Articles about Samsung

---

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.

  

Latest Articles about SK hynix

Technology Explained

---

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.

Latest Articles about DDR4

---

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.

Latest Articles about DDR5

---

Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

Latest Articles about Foundry

---

HBM3E: HBM3E is the latest generation of high-bandwidth memory (HBM), a type of DRAM that is designed for artificial intelligence (AI) applications. HBM3E offers faster data transfer rates, higher density, and lower power consumption than previous HBM versions. HBM3E is developed by SK Hynix, a South Korean chipmaker, and is expected to enter mass production in 2024. HBM3E can achieve a speed of 1.15 TB/s and a capacity of 64 GB per stack. HBM3E is suitable for AI systems that require large amounts of data processing, such as deep learning, machine learning, and computer vision.

Latest Articles about HBM3E