As manufacturers shift their focus to HBM production, there will be a shortage of DRAM memory supply
With the rise of artificial intelligence and "HBM", the DRAM memory industry is expected to experience chip shortages, so the market may usher in a "super cycle" driven by supply and demand, providing opportunities for enterprises to recover losses. However, HBM is still a priority consideration at present
Considering that just a few months ago, companies were facing widespread inventory correction issues and a decrease in consumer demand, the current state of the DRAM market is both fortunate and shocking.
Due to the hype of artificial intelligence forcing manufacturers such as Samsung and SK hynix to focus on enterprise storage and HBM production, placing DRAM in a secondary position, there may be a shortage of general-purpose DRAM storage chips in the market.
The capacity utilization rate of DRAM in the market has dropped to a historical low, mainly due to enterprises focusing more on meeting the large demand for high bandwidth memory. In addition, in the previous market situation, companies have significantly reduced the production scale of DRAM, so the sudden increase in demand will bring more problems to companies that have been in a state of inventory adjustment in the past few quarters.
Due to the hype of artificial intelligence forcing manufacturers such as Samsung and SK hynix to focus on enterprise storage and HBM production, placing DRAM in a secondary position, there may be a shortage of general-purpose DRAM storage chips in the market.
The capacity utilization rate of DRAM in the market has dropped to a historical low, mainly due to enterprises focusing more on meeting the large demand for high bandwidth memory. In addition, in the previous market situation, companies have significantly reduced the production scale of DRAM, so the sudden increase in demand will bring more problems to companies that have been in a state of inventory adjustment in the past few quarters.
Given the significant role that general-purpose DRAM memory chips play in the personal computer and mobile fields, the report suggests that there may be a widespread shortage as market adoption rates increase. Although we cannot yet determine whether prices are about to rise, a previous report by Morgan Stanley showed that due to the huge demand brought about by artificial intelligence hype, companies are determined to increase sales costs by double-digit percentages in the coming quarters, resulting in a surge in prices of memory products.
For companies such as SK hynix and Samsung, now may be the best time to recover profit losses in the DRAM market, but for consumers, the cost of memory products may be increasing. Therefore, if you see a bargain, please buy it immediately.
For companies such as SK hynix and Samsung, now may be the best time to recover profit losses in the DRAM market, but for consumers, the cost of memory products may be increasing. Therefore, if you see a bargain, please buy it immediately.