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TrendForce: A Profitable 2014 in DRAM

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According to TrendForce DRAMeXchange 2014 is a "fruitful" year for the global DRAM industry, as the smartphone boom leads to more memory going towards mobile applications, leading to higher standard memory prices.

DDR4 MemoryThe analyst says mobile memory accounts for 36% of 2014 DRAM production, and should surpass 40% of 2015 production.

“Because of high demand for mobile memory, DRAM manufacturers have somewhat reduced standard memory production, keeping module prices high,” DRAMeXchange says. “All DRAM manufacturers are staying profitable. The increasingly oligopolistic nature of the market and changes in market demand will stable the development of the industry in 2015.”

The analyst adds 4GB DRAM module ASPs stand at around $32, with an average memory of over 40%. It also lists 5 memory industry trends to follow in 2015.

  1. Overall DRAM revenues will grow by 16% in 2015-- slower than 2014, but through careful adjustment of production and product types the top DRAM makers will remain profitable. “2015 should be a year of stable growth and profitability for the DRAM industry,” DRAMeXchange remarks.
  2. Samsung and SK Hynix finalise production plant expansion plans, leading to further production capacity according to market demands.
  3. LPDDR4 RAM will be the mainstream standard in 2015 flagship smartphones, before taking over 15% of total mobile DRAM capacity by Q3 2015.
  4. The top DRAM players start migrating to 20nm process technology, even if increasing capital expenditure remains a barrier. Samsung is currently testing 20nm technologies, SK Hynix is expected to enter the market in Q2 2015 and Micron plans to use 20nm process technologies only in memory storage produced by Inotera, the analyst says.
  5. DDR4 technology, being fast, stable and low voltage, will first enter servers, and might surpass 50% market share by end 2015.

Go TrendForce: DRAM PLayers Stay Profitable in 2015