Global DRAM bit production will grow just 19.6% in 2018, as major suppliers intend to slow down the pace of their capacity expansions and technology migrations for chip price stability, according to DRAMeXchange.

DRAM bit demand will grow by a larger 20.6% in 2018, said DRAMeXchange. The supply is set to remain tight next year, DRAMeXchange indicated.

"Increase in memory content for smartphones and robust end demand from the server and data center markets will push the overall DRAM demand up in 2018," said Avril Wu, research director of DRAMeXchange.

While new fabs are being planned as to bring relief to the strained supply situation, they will not be ready for mass production until 2019 at the earliest, Wu continued. "Constructing a 12-inch wafer fab will take a least a year, and additional time has to be set aside for equipment installation and trial production runs."

The total wafer starts at Samsung's DRAM fabs are estimated at 390,000 units monthly, according to DRAMeXchange. For Samsung, the only fab sites that currently have the extra space for further capacity expansion are Line 17 and a part of the Line 15 plant site. Samsung has plans to build a second 12-inch wafer fab for making DRAM products in Pyeongtaek, South Korea.

SK Hynix has allocated more production capacity at its 12-inch M10 fab in Icheon for the manufacture of other semiconductors on a contract basis, DRAMeXchange identified. Due to its old age, the M10 fab will incur higher wafer losses if SK Hynix tries to upgrade the fab capacity to a 18nm DRAM production process. Fulfilling foundry orders would make more economic sense for this outdated facility, DRAMeXchange said.

Monthly wafer starts at SK Hynix's existing 12-inch DRAM fab dubbed M14 in Icheon is expected to achieve 80,000 units by the end of 2017, DRAMeXchange said. The company also plans to build a new 12-inch DRAM fab in Wuxi, China, which is expected to become operational in 2019 at the earliest.

Micron's DRAM plant in Hiroshima, Japan and another owned by its Taiwan-based subsidiary Micron Technology Taiwan (formerly Inotera) are both running at full capacity, DRAMeXchange indicated. Only Micron Memory Taiwan (formerly Rexchip) still has 60-70% of its A2 fab site available for capacity expansion. The extra space from A2 can be converted into an additional monthly wafer starts of around 30,000 to 40,000 units, DRAMeXchange said. However, Micron has yet to reveal any capacity expansion plans.

By: DocMemory
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