Revenue of the global DRAM memory market increased 15.4% sequentially to US$17.1 billion in the second quarter of 2020, driven by growth in both bit shipments and ASPs, according to DRAMeXchange.

"OEMs maintained or even stepped up procurement of components because they feared disruptions in the supply chain," DRAMeXchange indicated. The market revenue saw a slight drop sequentially in the prior first quarter, when bit shipments were affected adversely by coronavirus lockdowns and the epidemic's impact on logistics services.

DRAM bit shipments for the second quarter were higher-than-expected, when ASPs rose about 10% on quarter, DRAMeXchange said.

However, inventory levels at server OEMs are swelling which may discourage them from placing orders, DRAMeXchange noted. Meanwhile, demand for enterprise servers is slowing down, which may put server DRAM prices under further downward pressure in the third quarter, DRAMeXchange said. The overall DRAM ASPs for the third quarter are likely to stay flat or trend downward, the price tracker continued.

DRAM chipmakers are also likely to see their profits eroded by falling chip prices in the third quarter, said DRAMeXchange, adding that major players remain cautious about capacity expansions judging from coronavirus-induced uncertainty.

Samsung Electronics, SK Hynix and Micron Technology all saw their DRAM revenue climb over 10% sequentially in the second quarter, DRAMeXchange disclosed. Samsung held a 43.5% share of the global DRAM market during the quarter, followed by SK Hynix with a 30.1% share and Micron with 21%.

By: DocMemory
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