DRAM Revenues Soar in Second Quarter of 2024

In the second quarter of 2024, the dynamic random-access memory (DRAM) market experienced a significant surge in revenue, driven by expanded shipments of mainstream products. This growth was a welcome development for most manufacturers, as contract prices continued to trend upwards. Companies like Samsung, SK Hynix, and Micron all reported increased shipments during this period, contributing to the overall positive performance of the market.

According to data from TrendForce, Samsung, one of the leading DRAM manufacturers, saw a notable increase in average selling prices (ASPs) by 17 to 19 percent. This, coupled with a slight rise in bit shipments, resulted in a substantial revenue growth of 22 percent, reaching $9.82 billion. SK Hynix also experienced growth, with bit shipments rising over 20 percent, primarily due to the mass shipment of its HBM3e products. The company's DRAM revenue surged by 38.7 percent to $7.91 billion.

Micron, another key player in the DRAM market, reported a revenue increase of 14.1 percent in Q2, reaching $4.5 billion. Despite a slight decrease in ASP, the company managed to grow its bit shipments by 15 to 16 percent. This performance underscored the resilience and adaptability of manufacturers in navigating the evolving market conditions.

As the industry moved into the third quarter of 2024, DRAM manufacturers successfully concluded price negotiations, achieving higher ASPs than initially anticipated. TrendForce revised its forecast for Q3, projecting a contract price increase for conventional DRAM between 8 and 13 percent, a significant uptick from previous estimates. This positive outlook reflected the continued demand for DRAM products and the strategic pricing decisions made by manufacturers.

Looking ahead, industry experts predict further growth and innovation in the DRAM market. Micron's announcement of 'selling out' of HBM DRAMs for the year 2024 indicated the strong market demand for these products. Additionally, the increasing adoption of HBM technology is expected to account for 20 percent of the DRAM market in 2024, signaling a shift towards more advanced and efficient memory solutions.