HBM drives DRAM revenue to rebound, 20.4% quarter-on-quarter growth in 2023Q2
Owing to the robust advancement of artificial intelligence (AI) enterprises, the demand for related servers has surged, propelling the shipments of HBM. This, combined with numerous manufacturers stockpiling for client-side DDR5, has contributed to an increased shipment volume across the three major manufacturers. According to a recent report released by research firm TrendForce, the DRAM revenue for the second quarter of 2023 stood at approximately $11.43 billion, marking a sequential growth of 20.4% and halting a continuous three-quarter decline.
Samsung maintains its leading position. However, due to the DDR5 process still being at 1Ynm and having a limited market share, its Average Selling Price (ASP) has declined by approximately 7-9%. Nonetheless, driven by AI server shipments, its quarterly revenue experienced an 8.6% increase, reaching $4.53 billion. SK Hynix outperformed Micron, reclaiming the second spot. Their impressive performance in Q2 2023 not only showcased a sequential shipment growth exceeding 35% but also an approximately 7-9% growth in the average selling price, leading to a nearly 50% surge in revenue, tallying at $3.44 billion. Micron, having embarked on HBM development a tad late, missed the AI boom. Yet, it maintained commendable DDR5 shipments, preserving its average selling price, and garnered an approximate revenue of $2.95 billion, a sequential increase of 15.7%.
In summary, among the top three, SK Hynix’s market share has expanded, while both Samsung and Micron have seen varying degrees of market share contraction. Additionally, due to continued declines in contract prices for various products, all three major manufacturers still report negative profit margins. Samsung’s operating profit margin improved from -24% to -9%. SK Hynix saw a significant narrowing of its operating profit margin from -50% to -2%, while Micron’s operating profit margin improved from -55.4% to -36%.