After difficult market conditions in 2019, NAND & DRAM outlook appears favorable in 2020

Combined DRAM and NAND revenue was higher in Q4 2019 with revenue increasing $0.7 billion to $27.5 billion. Revenue for Q4-19 rose 2.5% compared to Q3 2019 and decreased 23.4% compared to Q4 2018. Demand in Q4-19 was robust due to seasonality and recovering datacenter demand. Supply growth was somewhat constrained due to low production growth and normalizing inventory levels. The following includes further details on the performance of the NAND and DRAM markets for Q4-19 with a look ahead to the coming quarters. The situation surrounding COVID-19 remains extremely fluid. Yole continues to actively monitor the supply chain and will adjust our outlook in real-time as information becomes available…

Profitability for the NAND vendors improved in Q4-19, but industry margins remained negative, at -3%, with Samsung the only supplier posting positive margins.
“Looking ahead, it is imperative that supplier margins improve to support this capital-intensive business,” asserts Walt Coon, VP of NAND and Memory Research, part of the Semiconductor & Software division at Yole.

DRAM market share rankings for Q4 2019 did not change, with Samsung retaining the top spot, SK hynix holding onto the second spot, Micron retaining third place, and Nanya holding onto fourth place… Given the capital expenditure plans for 2019 and 2020 Yole’s analyst do not expect significant shifts in manufacturing market share this year.
“Improving market conditions in 2020 will result in rising prices and revenue for the DRAM market,” forecasts Mike Howard, VP of DRAM and Memory Research, part of the Semiconductor & Software division at Yole. More info.