Up 5.1% quarter-on-quarter to $18.35 billion (about 2.9 trillion yen)
🟦DRAM Market Recovers Strongly, Q1 2024
In the first quarter of 2024, the DRAM market increased by 5.1% quarter-on-quarter to $18.35 billion (approximately 2.9 trillion yen), with all major suppliers achieving revenue growth. This growth was primarily due to the rising prices of mobile DRAM and server DRAM. Some PC OEMs have accepted higher price increases than initially expected due to rising supply concerns due to the earthquake.
While consumer demand remains weak, key suppliers expect seasonal demand to increase in the second quarter. The final DRAM contract price is projected to increase by 13~18% quarter-on-quarter.
🟦 DRAM soars due to increased demand for smartphones
Due to the strong sales of Chinese-made smartphones, mobile DRAM prices have risen the most among all applications. Suppliers maintained healthy inventory levels and had a strategy of aggressively increasing prices. Strong demand for server DRAM from major U.S. customers has significantly boosted Micron’s performance. Some PC OEMs had accepted higher price increases than originally expected due to rising supply concerns due to the earthquake.
Performance by Supplier
- Samsung: Revenue of USD 8.05 billion, market share of 43.9%. Average selling prices increased by approximately 20%, offsetting lower shipments.
- SK Hynix: Sales of USD 5.7 billion, market share of 31.1%. Average selling prices increased by approximately 20%, offsetting lower shipments.
- Micron: Revenue of $3.95 billion, market share of 21.5%. The average selling price increased by about 23%, and the shipment volume decreased by 4~5%.
🟦Summary
The DRAM market grew 5.1% to $18.35 billion in the first quarter of 2024, driven by price increases driving revenue growth from key suppliers.
Demand for memory, which is a leading indicator of the semiconductor economy, is steadily recovering. As the economy continues to recover, memory demand is likely to remain firm. However, it seems that things will not go as planned due to uncertainties such as the state of the global economy and the exchange rate.
