Prices, Shipments of DRAM decline in Q4: report

Global DRAM shipments dropped nearly 6 percent amid sluggish demand from manufacturers that had hoarded up the key consumer electronics component over continued chip shortages.

FREMONT, CA: According to data given by industry tracker TrendForce, DRAM shipments in the third quarter were valued at USD25 billion, down 5.8percent globally from the previous quarter. DRAM prices fell due to a decline in purchasing momentum, according to the report. DRAM, or dynamic random-access memory, is a type of volatile semiconductor memory that stores data as long as it is powered. It is found in a lot of computers, workstations, and servers.

According to data given by industry tracker TrendForce, DRAM shipments in the third quarter were valued at USD25 billion, down 5.8percent globally from the previous quarter. DRAM prices fell due to a decline in purchasing momentum, according to the report. DRAM, or dynamic random-access memory, is a type of volatile semiconductor memory that stores data as long as it is powered. It is found in a lot of computers, workstations, and servers.

Due to sluggish demand and ample inventory, the research predicted that the pattern would continue into the first quarter of this year, putting further downward pressure on DRAM prices. According to the article, DRAM revenue at Samsung Electronics Co., the world's largest memory chip maker, fell to USD10.5 billion in the fourth quarter, down 9percent from the previous quarter. Samsung noted in its fourth-quarter earnings report last month that the overall demand in the server based memory business was steady, but earnings dropped quarter-on-quarter due to a continuance of global supply chain difficulties and a modest drop in average selling price. In the first quarter, the firm expects to focus on improving the quality of its business portfolio by increasing sales of advanced node products to help the server and PC demand recover.

Pointing to risks linked with omicron's spread and worldwide supply chain concerns, Samsung cautioned that lingering uncertainties are likely to persist.

According to TrendForce, SK Hynix Inc., the world's second-largest memory chip maker, increased its DRAM revenue by 2.8 percent to USD7.4 billion in the fourth quarter, bucking the industry trend. The company credited the revenue gain to its focus on flexible supply management, among other things

Meanwhile, Samsung's DRAM market share fell slightly from 44 percent to 42.3 percent in the third quarter, while SK Hynix increased 2.5 percentage points to 29.7percent. Micron Technology Inc., a chip maker based in the United States, came in third with 22.3 percent. The worldwide DRAM market is expected to rise 0.3 percent to USD9 1.54 billion this year, similar to the previous year, due to strong demand despite lowering pricing, according to the report.