Global DRAM Industry Revenue Increases 13.6% Quarter Over Quarter, Samsung Maintains 41% Market Share Leadership

Growing Demand for DRAM: Insights from TrendForce

A recent report released by TrendForce highlights a noticeable increase in the demand for DRAM. This growth has persisted despite a decline in shipments of LPDDR4 and DDR4 memory types, primarily driven by the rising popularity of DDR5 and HBM memory technologies.

TrendForce Q3 2024 DRAM Overview — Unveiling the trends in DRAM demand in Q3 2024.

Market Growth Statistics

The DRAM market experienced a remarkable 13.6% revenue growth in the third quarter of 2024, when compared to the second quarter. This translates to a substantial revenue increase of $3.1 billion, escalating revenues from $22.9 billion to $26.02 billion.

Dominance of Major Players

Among the key players, Samsung remains the leader in the DRAM industry, maintaining a 41.1% market share in Q3 2024, although this represents a 1.8% reduction from the previous quarter. Remarkably, Samsung managed to achieve a 9% growth in revenue quarter-over-quarter, indicating resilience even amidst market challenges.

Micron Technology also demonstrated impressive performance, particularly in server DRAM and HBM3e shipments. The company noted a significant 13% revenue increase quarter-over-quarter, underscoring its aggressive manufacturing strategies and introduction of advanced memory solutions like the HBM3E, boasting 36 GB capacity and speeds of 9.2 Gbps.

Micron's Advanced LPDDR5x DRAM — Image Source: Micron, showcasing their innovative memory solutions.

Emerging Technologies and Competitive Landscape

SK Hynix has also made headlines with the introduction of its first 16-Hi HBM3E memory, offering an impressive 48 GB capacity per stack. However, it’s worth noting that Taiwanese manufacturers such as Nanya, Winbond, and PSMC experienced significant revenue declines, with decreases of -17.9%, -8.6%, and -27.6%, respectively. For instance, Nanya’s revenue fell from $307 million to $252 million quarter-over-quarter.

DigiTimes reports that these leading DRAM manufacturers are currently refining their supply chains and focusing on upgrading existing manufacturing equipment instead of increasing production levels. Concurrently, there are indications from both DigiTimes and TrendForce that Chinese DRAM companies are ramping up their shipments, potentially enticing OEMs and mobile brands with lower pricing options.

Future Market Predictions

These dynamics may lead to a reduction in contract prices for both DRAM and HBM memory, creating a competitive edge in pricing for end-users. Looking ahead, overall DRAM revenue is projected to continue its upward trajectory through Q4 2024, driven largely by the expansion of Chinese DRAM suppliers in the market.

For more insights, visit the original source at TrendForce.

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