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2022/01/05
A fire occurred at ASML’s factory in Berlin, Germany on January 3, according to TrendForce’s investigations ASML is the largest supplier of key equipment (including EUV and DUV) required for foundry and memory production According to TrendForce’s preliminary inquiry, approximately 200m2 out of a factory floor covering 32,000m2 was affected by the fire This factory primarily manufactures optical components used in lithography systems such as wafer tables, reticle chucks, and mirror blocks Reticle chucks used for affixing photomasks are in short supply Currently, the majority of components produced at this factory go towards supplying EUV machines while the lion’s share of demand for these products come from foundries If the fire delays component delivery, it cannot be ruled out that ASML will prioritize the allocation of output towards fulfilling foundry orders
Lead time for this exclusive supply of key EUV machines has been long and may affect the timeframe of advanced manufacturing process transition
In terms of foundries, EUV is primarily used in advanced manufacturing processes smaller than the 7nm node Currently, the only companies in the world using this equipment for manufacturing are TSMC and Samsung including TSMC’s 7nm, 5nm, 3nm nodes, Samsung's EUV Line (7nm, 5nm and 4nm) built in Hwaseong, South Korea, and 3nm GAA node However, due to factors such as the shortage of global foundry production capacity and the active expansion of manufacturing, semiconductor equipment lead times are also stretching further into the future
In terms of DRAM, Samsung and SK Hynix are already using EUV in their 1Znm and 1alpha nm processes, while US manufacturer Micron is expected to introduce EUV to their 1gamma nm process in 2024 According to TrendForce's current information, the lead time on ASML EUV equipment is approximately 12 to 18 months Due to this long equipment lead time, ASML is at liberty to wait for the completion of replace components for those lost in the fire during the time necessary for equipment assembly
Overall, the ASML Berlin factory fire will have a greater impact on the manufacturing of EUV lithography equipment when it comes to foundries and memory According to TrendForce’s information, it cannot be ruled out that ASML will obtain necessary components from other factory campuses In addition, the current lead time for EUV equipment is quite long Therefore, the actual impact on EUV supply remains to be seen
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
2022/01/04
An earthquake that was around magnitude 60 on the Richter scale occurred off the east coast of Taiwan at 5:46PM local time on January 3, 2022 As most local DRAM and foundry fabs are located in the northern and central parts of the island, TrendForce’s latest investigations reveal no notable damages to the equipment from the fabs Therefore, the production side is expected to continue normal operation, and the actual impact of the earthquake on the output of Taiwan’s DRAM and foundry industries will likely be limited Taiwan’s memory fabs, including those operated by MTTW, Nanya, and other smaller semiconductor companies, collectively account for about 21% of the global DRAM production capacity In the foundry industry, Taiwan’s fabs, including those operated by TSMC, UMC, Vanguard, PSMC, etc, together make up as much as 51% of the global production capacity
Regarding the current state of the DRAM market, it is in midst of the conventional off-season However, the recent easing of component gaps in the supply chain is generating some stock-up activities in different application segments and thus bolstering the overall demand The headwinds of the off-season are not as strong as usual Also, there are now concerns brewing in the wider memory market about the supply side being affected by the COVID-19 lockdown in the Chinese city of Xi’an Consequently, memory spot prices have been registering daily hikes lately It is worth noting that increases in DRAM spot prices have been more significant than the increases in NAND Flash spot prices Regarding DRAM contract prices, TrendForce for now maintains its original forecast of QoQ drops in the 8-13% range for 1Q22 However, the latest earthquake that struck Taiwan could affect DRAM buyers’ behavior at any time How contract prices will actually end up is something that requires further observation As for DRAM spot trading, the memory spot market of Mainland China was still in midst of the year-end holiday on January 3 Hence, spot traders were passive for the most part TrendForce will continue monitoring the spot market to see if the earthquake is going to be a positive driver going forward
Turning to the current state of the foundry market, the chip demand related to some categories of end products has slowed down a bit recently because of seasonality However, demand remains quite strong for chips that were previously in short supply, such as PMIC, Wi-Fi SoC, etc Foundry fabs on the whole are still operating with a fully loaded capacity because demand continues to outstrip supply The fabs of Taiwan-based foundries, including TSMC, UMC, PSMC, and Vanguard, are concentrated in Hsinchu, Taichung, and Tainan In those places, an earthquake intensity scale of 3 or under was recorded As such, no foundry fab in Taiwan has halted operation because of the earthquake, and all fabs are operating normally at the moment
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
2021/12/13
Regarding the shipment of various end products in 4Q21, the quarterly shipment of notebook computers is expected to remain about the same as 3Q21 figures, as prior component gaps were partially resolved during the quarter, according to TrendForce’s latest investigations As such, since PC OEMs’ DRAM inventory has lowered by several weeks, TrendForce has also further reduced its forecast of DRAM price drops for 1Q22 Even so, the overall demand for DRAM will still enter a cyclical downturn in 1Q22, during which DRAM ASP will also maintain a downward trajectory with an 8-13% QoQ decline Whether this price drop will subside going forward will depend on how well suppliers manage their inventory pressure and how DRAM purchasers anticipate further price changes
Decline in PC DRAM prices will narrow somewhat as PC OEMs reduce inventory
Whereas demand for Chromebooks has noticeably slowed down, demand for consumer and commercial notebooks remains strong Furthermore, certain components which were previously in shortage are starting to experience improved lead times Hence, quarterly shipment of notebook computers for 4Q21 will likely surpass earlier projections Looking ahead to 1Q22, not only will the demand side undergo a cyclical downturn, but the sufficiency ratio of PC DRAM will also surpass 30% following 4Q21’s high base period for comparison These factors will result in DRAM prices undergoing a noticeable decline, although PC OEMs will carry a lower inventory of DRAM in 1Q22 compared with 11-13 weeks of inventory in the previous quarter, thereby helping to curb the price drop of PC DRAM products On the other hand, as mobile DRAM prices begin to drop, certain DRAM suppliers have begun reallocating some of their production capacities from mobile DRAM to PC DRAM As a result, PC DRAM bit supply will likely undergo a corresponding increase in the short run In sum, although the above factors are able to provide some upside momentum that narrows the price drop of PC DRAM products, they are not enough to result in an upturn In particular, DDR4 and DDR5 PC DRAM will experience QoQ declines of 5-10% and 3-8%, respectively, for 1Q22, although the latter product will not noticeably impact the overall PC DRAM ASP, as its penetration rate is still relatively low
Server DRAM prices will decrease by about 8-13% QoQ due to slowdown in procurement activities
At the moment, CSPs and enterprise clients are carrying about 6-9 weeks and 8-10 weeks of server DRAM inventory, respectively Although these levels represent a slight decline compared to the end of 3Q21, this decline will not substantially contribute to an increase in demand Hence, server DRAM buyers will remain relatively conservative with regards to procurement activities before server DRAM prices reach a level that these buyers consider to be rock bottom DRAM suppliers’ inventory of server DRAM, on the other hand, has been gradually rising in 1H21 owing to decreased demand Furthermore, certain suppliers have ramped up their wafer input for server DRAM products, leading to an increased production In addition, while both buyers and sellers have reached a consensus on the falling prices of server DRAM, supply chain-related component gap issues have become gradually resolved, meaning Tier 1 clients will lessen their server DRAM procurement in the upcoming off-season As a result, suppliers will then be able to fulfill orders that were placed by Tier 2 clients but previously deferred because suppliers prioritized orders from Tier 1 clients These Tier 2 client orders will provide some upside demand for server DRAM, which is a component that is in relative surplus compared to other components TrendForce therefore expects server DRAM prices to decrease by 8-13% QoQ in 1Q22, during which server DRAM prices will experience the most severe declines compared to the other quarters in 2022
Mobile DRAM prices will decline by about 8-13% QoQ in light of intensifying oversupply
Thanks to mobile DRAM suppliers’ aggressive sell-offs in 4Q21, smartphone brands still carry a high level of mobile DRAM inventory as of the end of 2021 Looking ahead to 1Q22, not only will the market welcome the arrival of the traditional off-season, but other issues with the supply of processor chip bundles and the impact of the COVID-19 pandemic will also result in a 10% QoQ drop in smartphone production for the quarter Smartphone brands will become even more careful with respect to their procurement activities so as to avoid continually accumulating inventory As smartphone brands revise down their production targets, market demand for mobile DRAM has therefore become weaker now than it was in 1H21, in turn exacerbating the oversupply situation, which is reflected in the persistently rising mobile DRAM inventory of DRAM suppliers On the whole, the aforementioned issues of high inventory levels and oversupply situation will lead smartphone brands to further conservatize their production and procurement plans in 1Q22 Given that suppliers have suggested a sales strategy of negotiating for 4Q21 and 1Q22 prices collectively, and both buying and selling sides are confronted with inventory pressure, TrendForce thus forecasts an 8-13% QoQ decline in mobile DRAM prices for 1Q22
Graphics DRAM prices will hold flat while demand improves and spot prices rises ahead of time
The application demand for graphics DRAM has been recovering noticeably in the recent period Even so, it is worth pointing out that the graphics DRAM market is subject to a very high degree of fluctuations, and this situation is exacerbated by the introduction of the application demand from cryptocurrency mining in recent years Because the values of cryptocurrencies can swing dramatically, GPU manufacturers such as NVIDIA and AMD have to constantly adjust their sales strategies and switch between bundling and de-bundling In so doing, they are contributing to the rapid rise and fall of graphics DRAM demand The graphics DRAM products that the three dominant suppliers are now producing belong to the GDDR6 series The latest distribution of graphics DRAM output by chip type shows that suppliers are also gradually shifting their focus from 8Gb to 16Gb Micron, in particular, is the most proactive in this transition On the other hand, the mainstream graphics cards are still using 8Gb chips at this moment, so the demand for 8Gb graphics DRAM chips has actually increased In addition, spot prices of both GDDR5 8Gb and GDDR6 8Gb chips have experienced huge price hikes Due to this uptrend in spot prices, the difference between spot and contract prices is now negligible for graphics DRAM Some spot transactions even reveal prices that are higher than contract prices This latest development reflects the situation where buyers are more proactive in price negotiations Prices of graphics DRAM products on the whole will be fairly constrained from declining further due to the rise in spot prices, the aforementioned demand turnaround, and Micron’s decision to scale back production for 8Gb chips Taking these factors into account, TrendForce expects that the overall price trend will stay mostly flat
DDR3 Consumer DRAM prices will drop by about 3-8% QoQ despite reduced supply
The demand for consumer (specialty) DRAM is expected to be relatively weak in 1Q22 due to the effect of the traditional off-season for consumer electronics Also, demand will stay fairly depressed for TVs, which represent the leading source of in-home entertainment spending This is because countries around the world will continue in their attempts to lift their pandemic-related restrictions In addition to these factors, component gaps in the supply chain will still be a serious challenge for device manufacturers As DRAM components are in excess supply relative to non-memory components, device manufacturers will be less willing to stock up on the former Suppliers have been slow to scale back production for DDR3 products this year because prices of DDR3 products surged during the first half of the year However, the downward pressure on prices has now become much more significant, so the two leading South Korean suppliers have taken the initiative to revise their product mix strategies Hence, they will again transfer more of their mature wafer processing capacity from DDR3 products to CMOS image sensors or logic ICs Turning to price trend, TrendForce points to the strong correlation between DDR4 consumer DRAM products and PC DRAM products The latter were the first to experience a weakening of demand, and their prices have already made a downward turn in 4Q21 Looking ahead to 1Q22, contract prices of PC DRAM products will keep falling because of their significant difference with spot prices This means that DDR4 consumer DRAM products will also suffer sliding prices for 1Q22 with QoQ declines reaching 5-10% Looking at DDR3 consumer DRAM products, their prices will also drop even as their supply is shrinking Contract prices of DDR3 2Gb chips are projected fall by 3-8% QoQ on average for 1Q22, whereas DDR3 4Gb chips are projected to register larger declines
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
2021/11/04
Despite the forecasted 186% YoY growth in total DRAM bit supply next year, the global DRAM market is still expected to shift from a shortage situation to an oversupply, according to TrendForce’s latest investigations This shift can primarily be attributed to the fact that, not only are most buyers now carrying a relatively high level of DRAM inventory, but DRAM bit demand is also expected to increase by only 171% YoY in 2022 On the price front, the oversupply situation will result in a drop in DRAM ASP in 2022 but not a major decline in annual DRAM revenue, thanks to the oligopolistic nature of the DRAM industry Annual DRAM revenue for 2022 is expected to reach US$9154 billion, which represents a slight YoY increase of 03%
Based on an analysis of DRAM sufficiency ratio (which refers to the surplus of supply in comparison with demand) for each quarter in 2022, TrendForce forecasts a 15% YoY decrease in DRAM ASP for 2022, with prices undergoing the more noticeable declines during the first half of the year Heading into 2H22, however, owing to the rise in DDR5 penetration rate, as well as the arrival of peak seasonal demand, the decline in DRAM ASP will likely narrow TrendForce does not rule out the possibility that DRAM ASP may even hold flat or undergo an increase in 2H22
Annual NAND Flash revenue is expected to experience yet another increase next year by 74% YoY while numerous suppliers compete in higher-layer NAND Flash market segment
Turning to the NAND Flash market, TrendForce forecasts a 318% increase in total bit supply for 2022 and a 308% increase in total bit demand Hence, NAND Flash ASP will likely experience a downtrend next year as a result of the oversupply situation In addition, due to the perfect competition in the NAND Flash market, the decline in NAND Flash ASP next year will be more noticeable than the decline in DRAM ASP However, NAND Flash suppliers continues to make progress in the stacking of NAND Flash layers, so the growth in NAND Flash bit supply next year will therefore remain above 30% TrendForce thus expects NAND Flash revenue to have more room for growth and reach US$7419 billion in 2022, a 74% YoY increase
TrendForce’s forecast based on an analysis of NAND Flash sufficiency ratios for each quarter in 2022 similarly points to an 180% YoY decline in NAND Flash ASP next year Much like DRAM, NAND Flash prices will undergo the more noticeable declines during 1H22 Arrival of peak seasonal demand in 2H22 will potentially result in a narrowing of price drops and a potential for quarterly prices to hold flat
On the whole, the revenue performance of the DRAM industry and that of the NAND Flash industry over the years show that the annual total DRAM revenue is growing at more stable pace Again, this has to do with the oligopolistic structure of the DRAM market Since the DRAM market has a different competitive landscape, the fluctuations in the overall DRAM ASP have been relatively modest over the long run However, the development of the DRAM manufacturing technology is approaching a physical bottleneck as process nodes shrink below the 20nm level This means that the bit growth derived from the deployment of a more advanced process is becoming more and more limited over the years On the other hand, not only are NAND Flash suppliers relatively more unstable in their capacity expansion plans compared to the DRAM industry, but further improvements in NAND Flash layer-stacking technology also remains feasible Hence, the fluctuations in the overall NAND Flash ASP have been relatively more volatile over the long run On account of these factors, the DRAM industry generally has smaller YoY revenue growth rates compared with the NAND Flash industry, although the DRAM industry continues to surpass the NAND Flash industry in terms of profitability
Profitability of suppliers may be constrained if total revenue fails to keep pace with continuously rising CAPEX
Regarding the CAPEX (capital expenditures) of DRAM suppliers, there has been a gradual increase in these suppliers’ CAPEX to sales ratio in recent years, for two reasons First, the development of the DRAM manufacturing technology is approaching a physical bottleneck Die improvements have become more and more limited after process nodes have shrunk below the 20nm level Micron’s 1alpha nm process can offer an almost 30% increase in bits per wafer, but the 1Xnm-to-1Ynm migrations and the subsequent 1Ynm-to-1Znm migrations that the major suppliers have undertaken in the recent period have yielded increases of no more than 15% in bits per wafer Looking at future technological developments, Samsung and SK hynix have already integrated EUV lithography into their most advanced process technologies However, orders for EUV lithography tools have a much longer lead time, and the costs of these tools are also high Hence, the three dominant suppliers have allocated a large chunk of capital expenditure in advance to place orders for EUV lithography tools ahead of time
Secondly, the oligopolistic structure of the DRAM market has also helped establish a regime where there is a very low chance of a supplier’s ASP dipping under its fully-loaded cost despite the recurrence of the cyclical price downturn Moreover, DRAM suppliers have accumulated a substantial amount of profit from their products In view of the difficulties in die shrinking, suppliers ranging from the three dominant suppliers to others with less market share (such as Nanya Tech and Winbond) have developed tangible plans for capacity expansions These plans have, in turn, become the other main driver behind the ongoing increase in the CAPEX to sales ratio
The CAPEX to sales ratio of NAND Flash suppliers have likewise risen substantially following the transition to 3D NAND technology in 2017 Notably, the average CAPEX to sales ratio fell within the 25-30% range prior to 2017, but it has since climbed to nearly 40% as of now This growth can primarily be attributed to the fact that, as the number of 3D NAND layers increases, there is a corresponding increase in the lead times of NAND Flash products and in the degree of precision as well as difficulty involved in the etching process While the mainstream layer count of NAND Flash products approaches 1YY layers, suppliers are currently planning to move forward with the development of products with 2XX layers, which place an ever-increasing demand on etch depth The CAPEX of NAND Flash suppliers will continue to grow alongside increases in layer count and revenue
TrendForce indicates that NAND Flash layer-stacking technology will continue to progress, meaning suppliers will continue to pursue the stacking of additional layers as a way to lower their manufacturing cost per GB As such, the NAND Flash industry’s CAPEX will have additional potential for growth going forward, with a CAPEX to sales ratio of close to 40% or above It should be noted, however, that if total NAND Flash revenue fails to keep pace with the growth in CAPEX in the next few years, NAND Flash suppliers’ CAPEX to sales ratio may potentially undergo an excessive increase, thereby constraining the profitability of suppliers
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
2021/10/12
DRAM contract prices are likely to exit a bullish period that lasted three quarters and be on the downswing in 4Q21 at a QoQ decline of 3-8%, according to TrendForce’s latest investigations This decline can be attributed to not only the declining procurement activities of DRAM buyers going forward, but also the drop in DRAM spot prices ahead of contract prices While the buying and selling sides attempt to gain the advantage in future transactions, the DRAM market’s movement in 2022 will primarily be determined by suppliers’ capacity expansion strategies in conjunction with potential growths in demand The capacity expansion plans of the three largest DRAM suppliers (Samsung, SK hynix, and Micron) for 2022 are expected to remain conservative, resulting in a 179% growth in total DRAM bit supply next year On the demand side, inventory levels at the moment are relatively high Hence, DRAM bit demand is expected to grow by 163% next year and lag behind bit supply growth TrendForce therefore forecasts a shift in the DRAM market next year from shortage to surplus
Total DRAM bit supply is projected to grow by 179% in 2022 in light of DRAM suppliers’ low inventory levels and resurging demand in the server market
As buyers expanded their DRAM procurement in 1H21 in response to supply chain disruptions, DRAM suppliers were able to register better-than-expected shipment performances and reduce their inventory levels considerably These suppliers are now bullish on the growth of DRAM bit demand generated by the resurging server market In particular, while Samsung and SK hynix have marginally increased their wafer input for DRAM products, DRAM suppliers’ process technologies are continuing to migrate towards the 1Z nm and 1alpha nm nodes TrendForce therefore expects total DRAM bit supply to increase by 179% YoY in 2022
Most of Samsung’s wafer input growth takes place in the P2L fab, which houses relatively large physical spaces As the prevailing market leader, Samsung will likely continue to increase wafer input for DRAM products going forward The company’s DRAM bit supply growth for 2022 is expected to reach 196%, the highest out of the three dominant suppliers, despite the relatively modest growth in Samsung’s current wafer input, most of which comes from advanced process technologies It should also be pointed out that Samsung’s newest fab P3L is expected to be fully built by mid-2022 P3L will likely contribute to DRAM production by a limited amount next year but continue to provide further growth for Samsung’s DRAM supply after 2023
Given the bear market for DDR3 memory, SK hynix will likely speed up the reallocation of wafer capacity from DRAM to logic IC products at its old M10 fab next year After kicking off DRAM production at its newest M16 fab this year, SK hynix will see its total production capacity for DRAM chips continue expanding in 2022, although the company will also adjust its DRAM output according to the state of the market SK hynix is currently focused on raising the yield rates of its 1Y nm and 1Z nm process technologies, which will contribute to the forecasted 177% increase in SK hynix’s total DRAM bit supply next year
The latest expansions at Micron’s A3 fab are primarily undertaken as a safeguard against possible wafer losses during the fab’s upcoming transition to next-gen process technologies Hence, Micron’s total production capacity will unlikely undergo drastic changes for the 2021-2022 period, and growths in its DRAM bit output will be mostly derived from the increased yield of the 1Z nm and the latest 1alpha nm process technologies In addition, DRAM products manufactured with Micron’s 1alpha nm process technology have been widely adopted by clients, and Micron has been making the fastest progress in terms of process technology migration among the three largest DRAM suppliers The company is expected to increase its DRAM bit supply by 163% next year
Regarding Taiwanese suppliers, Nanya Tech is expected to finalize the construction of its new fab in 2024, while Winbond’s new fab is expected to kick off only pilot runs in 2H22 Taiwanese suppliers are therefore expected to make very limited contributions to the increase in total DRAM bit supply in 2022
DRAM bit demand is expected to increase by merely 163% in 2022, as the bear market for various products results in a high base period in 2021
The smartphone, server, and notebook computer segments comprise the three largest sources of DRAM consumption All three product categories have been seeing tremendous growth in 2021, thereby resulting in a high base period for comparison against next year’s figures, meaning that significant YoY growths in these products’ production and shipment, and subsequently their DRAM consumption, for 2022 are unlikely to take place Furthermore, the ongoing shortage of components has continued to affect various industries and constrain device assembly, leading to a decline in demand for DRAM, since OEMs/ODMs are carrying a relatively high level of DRAM inventory For 2022, DRAM bit demand is expected to increase by only 163% and lag behind DRAM bit supply
Regarding smartphones, while the shortage of key components such as chipsets and driver ICs remains unresolved, total smartphone shipment for 1Q22, which is already a period of cyclical downturn, will fall below expectations Although the upcoming release of new models is expected to bring about quarterly increases in smartphone production, TrendForce’s current forecast indicates an annual production volume of about 14 billion units for 2022, a modest 35% YoY growth This forecasted figure will likely be subject to additional declines if the shortage of semiconductor components extends further As such, the main growth driver of mobile DRAM demand in 2022 is expected to be the increase in “content per box” (which refers to the total DRAM contained within each individual handset) For 2022, mobile DRAM will account for approximately 40% of total DRAM bit consumption; there will likely be a 15% increase in mobile DRAM bit demand as well This increase represents a relatively sluggish performance, as mobile DRAM demand generally increased by more than 20% YoY in previous years
The server industry likewise faced supply chain-related issues, including disruptions in server assembly operations based in Southeast Asia, as well as shortages of PMICs and passive components With these issues projected to persist through 2022, total server shipment is expected to increase by 43% in 2022, primarily thanks to CSPs’ data center expansions On the other hand, the rise in Intel Ice Lake CPUs’ market share this year has led DRAM suppliers to manufacture more high-density dies (16Gb mono die) due to the server market’s surging demand for 64GB modules Once Intel’s next-gen Xeon server CPUs, Sapphire Rapids, enter the market next year, the penetration rate of 64GB server DRAM modules is expected to surpass 60% Hence, server DRAM bit demand is projected to increase by 20% in 2022, the highest among all DRAM product categories
Annual shipment of notebook computers for 2022 is projected to reach 222 million units, a nearly 7% YoY decrease, owing to increased vaccination rates in Europe and North America However, as WFH and distance education become the norm, annual notebook shipment will undergo some growth in the medium to long term, without falling back down to pre-pandemic levels Although Chromebooks remained the fastest-growing product category among all notebooks in 1H21, demand for Chromebooks has been steadily declining in 2H21 due to the increased Chromebook inventory carried by distribution channels in response to high demand for educational notebooks in 1H21 Instead, demand has shifted to commercial notebooks, which are equipped with more DRAM capacity, and this shift will persist through 2022 Total PC DRAM bit demand is expected to increase by more than 15% next year
DRAM revenue for 2022 will likely be mostly flat as bit shipment growth offsets decline in quotes
On the whole, DRAM suppliers have performed exceptionally well this year in terms of bit shipments thanks to OEMs’ energetic stock-up activities The annual total revenue of the DRAM industry is also projected to surpass US$90 billion in 2021 because of the price uptrend and the growth in bit shipments However, the DRAM market will begin to see prices falling in 4Q21 and a sharpening downtrend in 1H22 The overall ASP of DRAM products for the whole 2022 is projected to register a YoY drop of 15-20% On the other hand, the YoY growth rates of DRAM suppliers’ bit shipments will also be within a similar range for next year This means that the bit shipment growth will mostly offset the price decline, thereby keeping the total DRAM revenue for 2022 at a similar level to this year There are still uncertainties as to the movements of DRAM prices during 2H22 If prices manage to rally, then the annual total DRAM revenue may again reach a new high
For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms Latte Chung from the Sales Department at lattechung@trendforcecom
For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insidertrendforcecom/
