YG PRESS NEWS – DRAM is once more on track toward profitability

By the end of 2023, Yole Group announces the DRAM industry at the lowest level since 2016, in its quarterly DRAM Market Monitor, Q1 2024 update.

However, amidst an improving pricing landscape, operating losses in the DRAM sector decreased notably in Q4-23, with margins improving to -1% in Q4. In this context, Samsung and Hynix have returned to positive margins.

Indeed, in Q4-23, Samsung gained a significant increase in revenue share, reaching 45%, compared to the other memory players: respectively 31% and 19% for SK Hynix and Micron.

Q4-23 revenue results exceeded expectations by $1.2 billion, driven by higher-than-anticipated pricing and shipments. Shipments in Q4-23 were 6% higher than expected, with a notable 42% increase compared to Q4-22, underscoring the ongoing rebound of the DRAM market.

The demand for hardware for data center-based AI acceleration has surged, with Nvidia demonstrating yet another record-breaking quarter. This heightened demand for accelerators has consequently increased the demand for HBM, which commands approximately six times higher pricing than the current market average ASP, albeit still representing a low single-digit percentage of industry bits.

For more information about the DRAM Market Monitor, Q1 2024, do not hesitate to contact us.