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YG PRESS NEWS – From recovery to growth: DRAM’s path amid generative AI advancements

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In Q1 2024, the DRAM industry achieved an average operating margin of 18%, driven by profitability from Samsung, SK Hynix, and Micron.

2023 OUTLOOK

  • 2023 annual DRAM revenue finished at US$52 billion, the lowest level since 2016.
  • In 2023, DRAM revenues hit their lowest point since 2016, driven by significant price declines resulting from imbalanced supply and demand. To manage inventory levels, DRAM suppliers drastically reduced fab utilization.

In its DRAM Market Monitor, Q2 2024, Yole Group announces that with the demand for acceleration hardware for generative AI expanding from datacenter applications to the smartphone and PC markets, the DRAM market is experiencing a broad recovery across all technologies. In Q1 2024, the industry’s average operating margin reached 18%, with Samsung, SK Hynix, and Micron all reporting profitability.

DRAM suppliers are reversing fab utilization cuts, which had normalized OEM and supplier inventories, to meet the growing demand from OEMs and datacenter operators. High-value products like HBM are expected to continue their rapid growth as essential components for data center AI acceleration.

Additionally, DRAM demand is set to benefit over the next 18 months from a wave of COVID-era PCs that are now becoming candidates for replacement.

For more information about the DRAM Market Monitor, Q2 2024, do not hesitate to contact us.

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