The global DRAM market reached $26.02 billion in the third quarter of 2024, marking a 13.6% quarter-on-quarter increase, according to research from analyst TrendForce.
The rise was driven by growing demand for global DRAM and HBM products in datacenters, and came despite a decline in LPDDR4 and DDR4 shipments due to inventory reduction by Chinese smartphone brands, and capacity expansion by Chinese DRAM suppliers.
ASPs (annual selling prices) continued their upward trend from the previous quarter, with contract prices rising 8 percent to 13 percent, further supported by HBM’s displacement of conventional DRAM production.
Looking ahead to 4Q24, TrendForce projects a QoQ increase in overall DRAM bit shipments. It says the capacity constraints caused by HBM production are expected to have a “weaker than anticipated” impact on pricing. Capacity expansions by Chinese suppliers may prompt PC OEMs and smartphone brands to “aggressively deplete inventory” to secure lower-priced DRAM products. As a result, contract prices for conventional DRAM and blended prices for conventional DRAM and HBM are “expected to decline”.
Server and PC DRAM contract price increases lifted revenues for the top three DRAM manufacturers in Q3. Samsung retained the top spot with revenue of $10.7 billion, up 9 percent QoQ. By strategic inventory clearing of LPDDR4 and DDR4, bit shipments at Samsung remained flat compared to the previous quarter.
Over at SK hynix, there was reported revenue of $8.95 billion, a 13.1 percent QoQ increase, and it maintained its second-place position. Although its HBM3e shipments ramped up, a 1 percent to 3 percent QoQ decline in bit shipments from weaker LPDDR4 and DDR4 sales offset these gains.
Micron saw its revenue surge by 28.3 percent quarter-on-quarter to $5.78 billion, driven by “strong growth” in server DRAM and HBM3e shipments, which led to a 13 percent QoQ increase in bit shipments.
Taiwanese DRAM suppliers saw their revenues decline in Q3, falling significantly behind the top three manufacturers. Nanya Technology faced a more than 20 percent QoQ drop in bit shipments due to weaker consumer DRAM demand, and intensified competition in the DDR4 market from Chinese suppliers. Its operating profit margin further deteriorated from -23.4 percent to -30.8 percent, reflecting losses from a power outage incident.
Winbond experienced an 8.6 percent QoQ decline in revenue, falling to $154 million, as consumer DRAM demand softened and bit shipments decreased. And PSMC reported a 27.6 percent QoQ decline in revenue from its in-house consumer DRAM production. However, including foundry revenue, its total DRAM revenue rose 18 percent QoQ, driven by ongoing inventory replenishment from its foundry clients.
