See the dawn? DRAM offer may rise again as early as Q2 next year
On December 11, according to the Taiwan Media Union Evening News report, foreign investment reports pointed out that DRAM quotations will resume the upward trend at the earliest in the second quarter of next year.
The report said that 5G mobile phone, cloud data center and server manufacturers will usher in growth in the second half of next year and gradually increase their purchase of DRAM. Generally speaking, the 5G flagship mobile phone's DRAM is about 6-12G, compared with the 4G mobile phone's 3-6G, and the demand is doubling.
In the first three quarters of this year, the decline range of DRAM contract prices has gradually converged. Industry insiders pointed out that DRAM quotes are expected to reach the bottom in the fourth quarter, and the contract price decline range of the previous two months has been reduced to less than 5%. However, as 3C products have begun to enter the off-season, the demand for cloud-based data processing centers alone will continue to grow moderately. It is expected that the first quarter of 2020 will still have a hard time rising prices.
Industry insiders predict that as early as the second quarter of next year, the DRAM industry is expected to end this round of cold wind price reduction cycles. In the second half of next year, 5G mobile phones and high-speed computing traditional electronics enter the peak shipping season, and DRAM offers are expected to usher in a real upward growth.
At present, DRAM has gradually shifted from 10nm-level 1Xnm and 1Ynm to the third-generation 1Znm (12 ~ 14nm), and the process improvement has started to affect production. In the manufacture of DRAM after 1Znm, EUV technology will also be introduced. Because EUV equipment is very expensive, the large-scale expansion of the overall supply side of DRAM will be limited, which will also promote prices.
It is worth mentioning that according to data from the research department of DRAMeXchange of TrendForce, the total revenue of DRAM suppliers increased by 4% in the third quarter. Quarterly products are shipped ahead of schedule.
Observing the revenue ranking of DRAM manufacturers in the third quarter, Samsung ’s shipments increased by 30% compared with the previous quarter, and its single-quarter revenue ranked first, which increased by 5% from the previous quarter. South Asia Branch increased by 18.7% year-on-year. Among the top six manufacturers, five have achieved sequential growth.
The report said that 5G mobile phone, cloud data center and server manufacturers will usher in growth in the second half of next year and gradually increase their purchase of DRAM. Generally speaking, the 5G flagship mobile phone's DRAM is about 6-12G, compared with the 4G mobile phone's 3-6G, and the demand is doubling.
In the first three quarters of this year, the decline range of DRAM contract prices has gradually converged. Industry insiders pointed out that DRAM quotes are expected to reach the bottom in the fourth quarter, and the contract price decline range of the previous two months has been reduced to less than 5%. However, as 3C products have begun to enter the off-season, the demand for cloud-based data processing centers alone will continue to grow moderately. It is expected that the first quarter of 2020 will still have a hard time rising prices.
Industry insiders predict that as early as the second quarter of next year, the DRAM industry is expected to end this round of cold wind price reduction cycles. In the second half of next year, 5G mobile phones and high-speed computing traditional electronics enter the peak shipping season, and DRAM offers are expected to usher in a real upward growth.
At present, DRAM has gradually shifted from 10nm-level 1Xnm and 1Ynm to the third-generation 1Znm (12 ~ 14nm), and the process improvement has started to affect production. In the manufacture of DRAM after 1Znm, EUV technology will also be introduced. Because EUV equipment is very expensive, the large-scale expansion of the overall supply side of DRAM will be limited, which will also promote prices.
It is worth mentioning that according to data from the research department of DRAMeXchange of TrendForce, the total revenue of DRAM suppliers increased by 4% in the third quarter. Quarterly products are shipped ahead of schedule.
Observing the revenue ranking of DRAM manufacturers in the third quarter, Samsung ’s shipments increased by 30% compared with the previous quarter, and its single-quarter revenue ranked first, which increased by 5% from the previous quarter. South Asia Branch increased by 18.7% year-on-year. Among the top six manufacturers, five have achieved sequential growth.