SK Hynix Storage Soars: Q3 2023 Growth at 34.4%

As per the latest findings from TrendForce research, the third quarter of 2023 witnessed a noteworthy upswing in global Dynamic Random-Access Memory (DRAM) industry revenues, reaching an impressive $13.48 billion, reflecting an approximately 18% quarter-on-quarter growth rate. This surge signals a gradual recovery in market demand during the latter half of the year, as purchasers recommence stockpiling efforts, leading to a widespread escalation in accounts receivable for DRAM chip manufacturers.

During this quarter, Samsung emerged as a standout performer in the DRAM sector, boasting a revenue growth of around 15.9%, totaling $5.25 billion. Securing a dominant market share of 38.9%, Samsung maintained its position as the industry leader. The sustained demand for high-capacity products in the field of artificial intelligence, coupled with the mass production of 1alpha nm DDR5, contributed to Samsung's favorable combination of increased volume and prices.

SK Hynix achieved growth for the third consecutive quarter, with an impressive quarter-on-quarter growth rate of 34.4%, generating revenue of approximately $4.626 billion. This success can be attributed to the stable performance of High Bandwidth Memory (HBM) high-bandwidth storage and the consistent quality of DDR5 products.

Despite a marginal decrease in average selling prices, Micron experienced a quarter-on-quarter revenue growth of approximately 4.2%, reaching a total of $3.075 billion, with a market share of 22.8%. The increase in shipment volume effectively compensated for the decline in prices due to rising demand.

In the realm of other manufacturers, Nanya Technology, Winbond Electronics, and Powerchip Semiconductor Corporation (PSMC) secured the fourth to sixth positions, respectively. Nanya Technology faced a decline in the prices of mainstream DDR3 and DDR4 products due to weak demand. Winbond Electronics achieved a modest revenue increase through shipment growth, while PSMC's revenue primarily stemmed from its custom DRAM business, realizing a modest year-on-year growth.

Looking ahead to the fourth quarter of 2023, TrendForce anticipates a rise in DRAM contract prices by approximately 13-18%, driven by the unequivocal upward pricing stance of original manufacturers. Despite a milder rebound in demand compared to previous years, the growth rate of DRAM shipments in Q4 will be somewhat constrained by the persistently elevated inventory levels in the server sector.