DRAM revenues up while shipments decline

DRAM revenues up while shipments decline

Market news |
By Peter Clarke

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The DRAM sector revenues increased to US$18.35 billion in 1Q24, a 5.1 percent sequential rise, according to market analyst TrendForce.

The revenue increase was driven by rising prices for mainstream products. The top three suppliers experienced a seasonal decline in shipments in the first quarter but also continued to benefit from contract price increases seen in 4Q23.

Mobile DRAM saw the highest price increase out of all applications thanks to strong sales of Chinese smartphones. On the other hand, the price increase for consumer DRAM was the lowest among all applications, as manufacturers still need to clear their inventories.

Even though consumer demand remains weak, the shipment volumes of major suppliers are expected to increase seasonally in the second quarter. Some PC OEMs have started to agree transaction prices, with increases higher than TrendForce’s initial expectations. TrendForce reckons DRAM contract prices will rise by between 13 and 18 percent in 2Q24.

DRAM manufacturers ranked by global DRAM revenue in 1Q24 (US$ millions). Source: TrendForce 

 Samsung’s revenue experienced a modest rise to $8.05 billion in 1Q24, marking a quarterly growth of just 1.3 percent. SK Hynix, ranked second, saw a slight revenue increase to $5.7 billion, with a quarterly growth of only 2.6 percent. DRAM ASPs at both Samsung and SK Hynix rose by about 20 percent, in-line with expectations (see DRAM prices set to climb 20 percent in 1Q24).

Micron was the big performer with revenue in 1Q24 up 17.8 percent to US$3.95 billion. Its market share rose by 2.3 percentage points to 21.5% to secure the third position. The ASP increased by approximately 23 percent, while shipment volume only dropped by 4 to 5 percent, outperforming Micron’s top two competitors.

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