DRAM industry surges 24.8% in 2Q24

This surge was driven by expanded shipments of mainstream products that boosted revenue for most manufacturers, according to TrendForce. Contract prices remained on an upward trend in the second quarter, and due to geopolitical factors, the increase in conventional DRAM contract prices for the third quarter is now expected to exceed previous forecasts.

Key players Samsung, SK hynix, and Micron all reported increased shipments in Q2 compared to the previous quarter. ASP also continued to rise following the first quarter’s trend. Contributing factors included the earthquake that struck Taiwan in early April and the high demand for HBM products, which shifted DRAM buyers toward more aggressive procurement strategies. Consequently, Q2 contract prices saw a final adjustment of 13%–18%.

TrendForce highlighted that Samsung benefited from a 17%–19% increase in ASP, with bit shipments also rising slightly, leading to revenue growth for DRAM of 22% to USD 9.82 billion as the company maintained its market-leading position. SK hynix saw its bit shipments increase by over 20% — driven by the certification and mass shipment of its HBM3e products — resulting in a substantial revenue increase of 38.7% to USD 7.91 billion. Micron’s Q2 revenue rose by 14.1% to USD 4.5 billion despite a slight decrease in ASP, as bit shipments grew by 15%–16%. However, the company’s aggressive clearance of low-cost 1-beta nm DDR5 inventory in Q2 caused it to lag behind its major competitors.

Upward revision of Q3 DRAM contract prices reflects geopolitical factors

TrendForce notes that most DRAM manufacturers concluded Q3 contract price negotiations with PC OEMs and CSPs in late July 2024, with results exceeding expectations. Consequently, TrendForce has revised the Q3 contract price increase for conventional DRAM to 8%–13%—approximately 5 percentage points higher than the previous forecast.

For more information visit TrendForce.