Worldwide DRAM sales jump 9.9% in Q4, driven largely by AI hype

Global DRAM industry revenue worldwide exceeded $28 billion in Q4 2024, representing a quarterly growth of 9.9%. The positive dynamics are primarily due to the growth of contract prices for server DDR5 and HBM shipments, thanks to which the three leading DRAM suppliers once again increased their revenue, TrendForce analysts note.

Image source: samsung.com

Contract prices for products have turned mostly downwards, but not in the server segment, where US cloud providers have increased their purchases of DDR5, thereby supporting the growth of prices for server DRAM. The current quarter is expected to see a slowdown, with DRAM manufacturers reducing their overall supply in bits. PC and smartphone manufacturers will get rid of inventory, which will cause DRAM manufacturers to transfer capacities from DDR4 and HBM to server DDR5. Demand from cloud providers will decrease, causing contract prices to fall for both DRAM and HBM.

Image source: trendforce.com

Samsung remained the leading DRAM supplier with revenue of $11.25 billion, up 5.1% quarter-on-quarter. However, its market share declined slightly as the company reduced bit shipments due to declining demand for LPDDR4 and DDR4 as PC and smartphone OEMs began to clear inventory. The second-ranked SK hynix posted revenue of $10.46 billion, up 16.9% quarter-on-quarter, and its market share increased to 36.6%. SK hynix increased its HBM3e and total bit shipments, offsetting declines in LPDDR4 and DDR4. Micron took third place with revenue of $6.4 billion, up 10.8% quarter-on-quarter. The US manufacturer also increased bit shipments due to higher shipments of server DRAM and HBM3e, keeping its market share unchanged for the quarter.

Taiwanese DRAM makers saw their revenue decline due to weaker consumer demand and increased competition in the DDR4 market from Chinese suppliers. Nanya Technology’s revenue was $203 million, down 19.3% quarter-on-quarter; Winbond’s revenue was $119 million, down 22.4% quarter-on-quarter. PSMC’s DRAM revenue, primarily consumer, fell 37.9% quarter-on-quarter to $11 million due to lower wafer production volumes. Even including revenue from semiconductor manufacturing, the company’s total revenue was down 10% quarter-on-quarter, indicating that PSMC’s semiconductor manufacturing business remains in steady demand.