The global revenue of DRAM chip manufacturers in the third quarter of this year reached $26.02 billion, marking a 13.6% increase compared to the previous quarter, according to analysts at TrendForce.
This growth is attributed to strong demand for DDR5 and HBM memory in data centers—a trend that was unaffected by the declining shipments of LPDDR4 and DDR4 due to lower inventories among Chinese smartphone manufacturers or the expansion of production capacity by Chinese DRAM makers. The average selling price (ASP) continued its upward trend from the previous quarter. Contract prices rose by 8-13%, with HBM driving this trend by shifting production focus away from conventional DRAM chips. For the fourth quarter, analysts anticipate an increase in overall DRAM bit shipments. However, robust HBM production is expected to continue negatively impacting conventional DRAM production. Meanwhile, Chinese suppliers are expanding capacity, potentially prompting PC and smartphone manufacturers to aggressively clear inventories and opt for more affordable DRAM. As a result, contract prices for traditional DRAM are predicted to decline.
The rise in DRAM contract prices for PCs and servers during the third quarter boosted revenues for the three largest memory manufacturers. Samsung retained its leading position, earning $10.7 billion, a 9% increase quarter-over-quarter. Despite a strategic reduction in LPDDR4 and DDR4 inventory, unit shipments remained stable. SK Hynix recorded $8.95 billion in revenue—a 13.1% increase—thanks to higher HBM3e shipments, though weaker LPDDR4 and DDR4 sales led to a 1-3% drop in bit shipments. Micron’s revenue surged by 28.3% to $5.78 billion, driven by strong server DRAM and HBM3e demand, with bit shipments rising 13% quarter-over-quarter.
Taiwanese suppliers, however, experienced declining revenues in the third quarter, significantly lagging behind the top three players. Nanya Technology’s shipments dropped by over 20%, attributed to weaker demand for consumer DRAM and growing competition in the DDR4 market from Chinese manufacturers. The company’s operating profit fell from -23.4% to -30.8% due to a power outage incident. Winbond reported an 8.6% quarter-over-quarter decline in revenue to $154 million, reflecting reduced demand for consumer DRAM and lower bit shipments. PSMC saw a 27.6% drop in revenue from its consumer DRAM production, but when including semiconductor revenue, its total DRAM income rose by 18%, driven by ongoing restocking by semiconductor clients.
