High DRAM Inventory: Limited Q4 Growth Expected
Dynamic Random Access Memory (DRAM) Market Witnesses Resurgence in Q3, Global Industry Revenue Surges by 18%. In Q4, Clear OEM Price Hike Signals Propel Contract Prices, Anticipated Growth of 13%-18%. However, Demand Recovery Moderates Compared to Previous Peak Seasons. While Buyers Indicate a Need for Stocking Up, Server Sector Remains Reserved in Freight Handling Due to Elevated Inventory Levels. Q4 DRAM Industry Shipment Growth Foreseen to be Constrained.
TrendForce Reports Q3 Revenue Growth Across Three Major OEMs, Fueled by Sustained Demand for High-Capacity Products Amid AI Trends. 1 alpha nm DDR5 Mass Production Contributes to Overall Price and Volume Uptick. Samsung Experiences Q3 DRAM Revenue Surge of Approximately 15.9%, Reaching $5.25 Billion.
SK Hynix Witnesses Significant Growth Driven by HBM and DDR5 Product Demand. Three Consecutive Quarters of Increased Shipments, Coupled with a 10% Quarterly Growth in Average Selling Prices, Propel Q3 Revenue Growth of 34.4% to Approximately $4.626 Billion. Market Share Gap with Samsung Narrows to Less Than 5 Percentage Points.
Micron Experiences Slight Average Selling Price Decrease but Sees Increased Shipments Amidst Demand Uptick, Supporting Modest Q3 Revenue Growth of About 4.2% to $3.075 Billion.
In Terms of Production Capacity Planning, Samsung Expands DDR4 Production Reduction to Address High Inventory Levels, Anticipating a 30% Reduction in Q4. Peak Season Expected to Await Until Second Half of 2024, With Wafer Production Set to Increase in Q2 2024. SK Hynix Ramps Up Wafer Production by End of 2023, Aligned With Expected DDR5 Penetration Increase in 2024, Projecting Gradual Total Wafer Production Rise Each Quarter. Micron's Healthy Inventory Sees Wafer Production Rebound in Q4 2023, With a Slight Increase Expected in 2024, Focusing on Process Transition.
Among Taiwanese Manufacturers, Nanya Technology Faces Subdued Demand for Mainstream DDR3 and DDR4 Products, Resulting in Declining Prices and Limiting Revenue Growth to $244 Million. Winbond Electronics, Employing an Active Pricing Strategy to Expand DDR3 Business, Increases Production Capacity at Kaohsiung Plant, Leading to Q3 Revenue Growth to $112 Million.
Powerchip Technology's Revenue Calculation Encompasses Consumer-Grade DRAM Produced In-House, Excluding DRAM Foundry Services. Benefiting From Rising Spot Prices, Slight Demand Increase Drives 4.4% Quarterly Growth in DRAM Revenue in Q3.
