DRAM Revenue Skyrockets 18% in Q3, but Q4 Growth Uncertain

TrendForce has released a new research report, revealing that the DRAM industry’s revenue for the third quarter of this year reached approximately $13.48 billion, marking an 18% sequential increase. The latter half of the year saw a gradual resurgence in market demand, further fueled by the sustained interest in Artificial Intelligence (AI) and buyers resuming stockpiling, which contributed to revenue growth for manufacturers.

As the leading player in the industry, Samsung‘s DRAM revenue saw a quarterly increase of about 15.9%, reaching $5.25 billion. Particularly noteworthy is the impact of the mass production of 1a nm DDR5, which has led to both volume and price increases, coupled with a stable demand for high-capacity products. SK Hynix benefited from its DDR5 and HBM product lines, witnessing a continuous increase in shipments for three consecutive quarters. Its Average Selling Price (ASP) also rose by 10%, with a dramatic quarterly growth of 34.4%, taking its DRAM revenue to $4.626 billion. This growth was the most significant among manufacturers, narrowing its market share gap with Samsung to within 5%. Micron, while experiencing a slight decline in average selling prices, saw its DRAM revenue grow by approximately 4.2% quarter-over-quarter, reaching $3.075 billion, thanks to the revival in demand and increased shipments.

Nanya Technology benefited from PC clients’ stockpiling, leading to a 17% to 19% increase in shipment volume. However, the demand for its mainstream DDR3 and DDR4 products remained relatively weak, and the average selling price continued to decline, bringing its DRAM revenue to $244 million. Winbond adopted a more aggressive pricing strategy with significant flexibility in negotiations and saw an increase in shipments, raising its DRAM revenue to $112 million. Powerchip Semiconductor’s DRAM revenue, primarily from its products and not including foundry services, benefitted from the rise in spot prices, leading to a 4.4% quarterly increase.

Looking ahead to the fourth quarter of this year, manufacturers have a clear stance on price increases, with DRAM contract prices expected to rise by approximately 13% to 18%. While there is a demand for stockpiling from buyers, it is not as robust as in previous peak seasons. Additionally, with high inventory levels in the server sector, the increase in DRAM shipment volume for the fourth quarter is anticipated to be limited.