DRAM Revenues Rise Despite Shipments Decline

The DRAM market experienced a notable revenue increase in the first quarter of 2024, primarily fueled by the uptick in prices for mainstream products. Despite a seasonal decline in shipments for the top three suppliers, they continued to benefit from contract price increases that were observed in the previous quarter.

One of the key drivers of the revenue surge was the significant price hike in Mobile DRAM, attributed to robust sales of Chinese smartphones. Conversely, the price increase for consumer DRAM was relatively subdued compared to other applications, as manufacturers grapple with the need to clear their existing inventories.

Looking ahead, industry experts anticipate a seasonal uptick in shipment volumes for major suppliers in the second quarter, even amidst lingering weakness in consumer demand. Some PC OEMs have already begun agreeing on transaction prices, with hikes surpassing initial projections by TrendForce. It is estimated that DRAM contract prices could witness a surge of between 13 and 18 percent in the upcoming quarter.

When examining the global DRAM revenue rankings for the first quarter of 2024, Samsung experienced a modest revenue increase to $8.05 billion, reflecting a quarterly growth rate of 1.3 percent. SK Hynix, securing the second position, also saw a slight revenue uptick to $5.7 billion, with a growth rate of 2.6 percent. Both companies witnessed a 20 percent rise in DRAM ASPs, aligning with market expectations.

Micron emerged as a standout performer in the first quarter, with its revenue surging by 17.8 percent to reach US$3.95 billion. The company's market share expanded by 2.3 percentage points to 21.5%, solidifying its position in third place. Despite a slight drop in shipment volume by 4 to 5 percent, Micron outperformed its competitors with an ASP increase of approximately 23 percent.