December 3, 2022

International DRAM shipments dropped practically 6 p.c within the fourth quarter from three months earlier, a report confirmed Friday, amid sluggish demand from producers that had hoarded up the important thing shopper electronics part over continued chip shortages.

DRAM shipments through the October-December interval have been valued at US$25 billion, down 5.8 p.c globally from the earlier quarter, in line with the information offered by trade tracker TrendForce. Declining buying momentum, it mentioned, additionally led to a drop in DRAM costs.

DRAM, or dynamic random-access reminiscence, is a kind of unstable semiconductor reminiscence that retains knowledge so long as energy is provided. It’s generally utilized in private computer systems, workstations and servers.

The report anticipated the development to proceed into the primary quarter of this yr on sluggish demand and ample stock, additional placing downward stress on DRAM costs.

This file photo provided by SK hynix Inc. on Feb. 1, 2021, shows the company's M16 fab in Icheon, 80 kilometers southeast of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

This file picture, offered by Samsung Electronics Co. on Could 21, 2020, exhibits the corporate’s chip plant in Pyeongtaek, south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

DRAM income at Samsung Electronics Co., the world’s largest reminiscence chip maker, dropped to $10.5 billion within the fourth quarter, down 9 p.c from the earlier quarter, in line with the report.

In its fourth-quarter earnings report final month, Samsung mentioned, “Total demand within the reminiscence enterprise, centered on server, was strong however earnings declined quarter-on-quarter on account of a continuation of worldwide provide chain points and a slight drop in common promoting worth.”

For the primary quarter, it mentioned it can “give attention to maximizing the standard of the enterprise portfolio by way of increased gross sales of superior node merchandise to help the server and PC demand restoration.”

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Samsung warned, nonetheless, “Lingering uncertainties are prone to persist,” referring to dangers related to the unfold of omicron and international provide chain points.

SK hynix Inc., the world’s second-largest reminiscence chip maker, noticed its DRAM income rise 2.8 p.c to $7.4 billion within the fourth quarter, bucking the trade development, in line with TrendForce.

Saying its fourth-quarter earnings outcomes, the corporate attributed the income development to its give attention to versatile provide administration, amongst different issues.

“SK hynix determined to proceed its technique of specializing in profitability whereas containing market volatility by managing its DRAM stock flexibly,” it mentioned.

In the meantime, Samsung’s DRAM market share barely dropped on-quarter to 42.3 p.c from 44 p.c, whereas SK hynix climbed 2.5 share factors to 29.7 p.c. The U.S. chipmaker Micron Know-how Inc. ranked third at 22.3 p.c.

The report beforehand forecast the worldwide DRAM market would develop 0.3 p.c to $91.54 billion this yr, much like the earlier yr on strong demand regardless of falling costs.

The typical promoting worth of DRAM is predicted to fall by 15 p.c, with the drop being extra pronounced within the first half.

It famous, nonetheless, the costs are prone to climb once more within the second half because of “the rise in DDR5 penetration charge and the arrival of peak seasonal demand.” DDR5 is the next-generation of PC most important reminiscence with increased velocity and greater reminiscence.