3Q24 Sees 13.6% QoQ Revenue Rise for Server DRAM and HBM

A Surge in the DRAM Market

In a recent dive into the numbers, TrendForce has launched some exciting news for the global DRAM industry. Revenue hit a staggering

$26.02 billion in Q3 2024

, marking a robust

13.6% increase

from the previous quarter. What’s fueling this growth? A surge in demand for

DDR5

and

HBM

(High Bandwidth Memory) in data centers is leading the charge. Meanwhile, we’ve seen a dip in shipments of

LPDDR4

and

DDR4

as Chinese smartphone brands tighten their inventory and local DRAM suppliers ramp up their production capacity.

Price Trends and Future Projections

The pricing landscape is equally compelling. Average Selling Prices (ASPs) continued their upward trajectory, with contract prices climbing between

8% and 13%

. This is partly due to HBM’s growing prominence in the market, which is starting to edge out traditional DRAM production. Looking ahead to Q4 2024, TrendForce anticipates a further increase in overall DRAM bit shipments. However, there’s a twist: the capacity constraints from HBM production might not impact pricing as severely as expected.

With Chinese suppliers expanding their capacity, we could see PC OEMs and smartphone brands going on a bit of a shopping spree, aggressively reducing their inventory to snag lower-priced DRAM products. So, what does this mean for contract prices? A decline is on the horizon for both conventional DRAM and the blended prices that include HBM.

Who’s Leading the Pack?

The top three DRAM manufacturers are basking in the glow of these rising revenues.

Samsung

continues to dominate, raking in

$10.7 billion

—a

9% increase

from the last quarter. Their strategy of clearing out LPDDR4 and DDR4 inventory kept bit shipments steady, but flat compared to the previous quarter.

Next up is

SK hynix

, which reported revenues of

$8.95 billion

, marking a

13.1% QoQ increase

. Despite ramping up HBM3E shipments, they faced a slight decline in bit shipments—down

1%-3%

—due to weaker sales in LPDDR4 and DDR4. And let’s not forget

Micron

, which saw a remarkable

28.3% revenue surge

to

$5.78 billion

, driven by strong demand for server DRAM and HBM3e shipments, leading to a

13% increase

in bit shipments.

Challenges for Taiwanese Suppliers

However, not everyone is riding this wave of success. Taiwanese DRAM suppliers are feeling the pinch, with revenues taking a hit in Q3 2024.

Nanya Technology

saw a staggering

20% drop

in bit shipments due to sluggish consumer demand and fierce competition from Chinese suppliers in the DDR4 market. Their operating profit margin took a nosedive from

-23.4% to -30.8%

, a stark reminder of the challenges they face, especially after a recent power outage incident.

Winbond

isn’t faring much better, with an

8.6% decline

in revenue, landing at

$154 million

. The softness in consumer DRAM demand and a decrease in bit shipments are weighing heavily on their performance. And while

PSMC

reported a

27.6% drop

in revenue from its in-house consumer DRAM production, they did manage an

18% increase

in total DRAM revenue when including Foundry income, thanks to ongoing inventory replenishment from their foundry clients.

Looking Ahead

So, what’s the takeaway from all this? The DRAM market is in a state of flux, with some players thriving while others struggle to keep up. As demand for advanced memory solutions like DDR5 and HBM continues to grow, the landscape is set for further changes. Will the Taiwanese suppliers find a way to bounce back, or will the competition from their Chinese counterparts continue to reshape the market? Only time will tell, but one thing is certain: the world of DRAM is anything but dull.

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