Research firm IC Insights released the latest report, DRAM factory sales in the fourth quarter of 2017 will hit a historic new peak, estimated at 21.1 billion US dollars, compared with 12.8 billion US dollars in the fourth quarter of 2016 a 65% surge. IC Insights said that according to historical experience, the DRAM industry may experience a long-term downward trend in the near future. As DRAM capacity increases, prices will start to decline this year, with a two-year losing streak. TL-5186
Looking back at 2017, benefiting from the demand for data centers, driving a significant increase in server DRAM, while smart phones and other mobile device products using low-power high-density DRAM are also synchronized growth in 2017 DRAM price quotes all the way up to the fourth quarter is still strong , IC Insights estimates fourth quarter 2017 DRAM sales will reach 21.1 billion US dollars, an increase of 65%, setting a record high. STP36NF06FP
IC Insights predicts that the DRAM market will reach an annual growth rate of 74% in 2017 and a breakthrough of 31 billion U.S. dollars in 2017. There are five major new stimulus factors in the DRAM market. These include the limited memory capacity of memory suppliers, the technologies below 20 nanometers Increased difficulty, demand for graphics DRAM, server DRAM and mobile DRAM.
Taking mobile storage as an example, the capacity of smart phones carrying DRAM memory is continuously increasing. The Apple iPhone 8 has 2GB of DRAM and the iPhone X has 3GB of DRAM. Samsung Galaxy S8 uses 4GB DRAM. Huawei P10 Plus and HTC U11 are equipped with 6GB of DRAM. Razer Inc.’s first smart phone, the One Plus 5 model from Singapore, known primarily for video game equipment, also boasts 8GB of DRAM.
However, IC Insights warns that based on historical trends, the DRAM industry may experience a long-term downward trend in the near future as prices will begin to decline as production capacity increases and DRAM production increases Fear will be 2 years.
Samsung and SK hynix announced new capital expenditures into the new DRAM production will be trial production in the second half of 2018, which may ease the first half of 2018 DRAM gains. Samsung’s Pyeongtaek plant in South Korea is expected to ramp DRAM production in Q4 2018, and SK Hynix also announced plans to build a new production line in Wuxi, China.
IC Insights also said DRAM maker Samsung and SK hynix will have new capacity out of the top 2. And the No. 3 maker of Micron can not afford to sit idly by, especially in the highly competitive DRAM industry. Micron may also re-install a new wafer plant.
