Global DRAM revenue surged 30% on year and 9% sequentially to US$19 billion in the first quarter of 2021, according to Counterpoint Research. Distance education and work from home (WFH) continued propelling a substantial demand for smartphone and laptop DRAM, resulting in a 6% growth in bit shipment and a 3% rise in ASP over the previous quarter.

China-based handset makers stepped up their smartphone shipments in the first quarter, intending to gain shares from the beleaguered Huawei, said Counterpoint Research associate director Brady Wang.

In addition, high-density LPDDR4x memory prices softened in the second half of 2020, increasing smartphone DRAM content and making 6GB the minimum standard for mid- to high-end smartphones since 2021, Wang indicated. As a result, the average DRAM capacity in smartphones clocked at 5.3GB in the first quarter of 2021, rising impressively by around 21% from a year earlier and 7% on quarter.

Similarly, servers experienced recovery in demand, and the adoption of a new data-center CPU bumped up server content per box, Wang continued. Therefore, the server segment's DRAM demand rose as well.

All three major players will spend most of their resources in migrating to advanced nodes, Wang said. Meanwhile, transportation and component shortage concerns will force device vendors to place orders earlier than usual. When coupled with the growing demand for PCs, games and servers, these factors signal the possibility of the DRAM market turning to a shortage this year, Wang indicated.

The smartphone market is recovering at present, but its cost sensitivity means that a DRAM price spike may put the brakes on smartphone DRAM content growth, Wang said.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved