Institution: DRAM industry has ended three consecutive declines, with Q2 revenue of $11.43 billion increasing by 20.4% month on month
The latest report from TrendForce states that the growth in demand for artificial intelligence servers is driving the growth of HBM shipments. Combined with the wave of increasing customer DDR5 inventory, all three major DRAM suppliers' shipments increased in the second quarter. The DRAM industry's revenue in the second quarter was approximately 11.43 billion US dollars, an increase of 20.4% month on month, reversing three consecutive quarters of decline. Among suppliers, SK Hynix's quarterly shipment volume has significantly increased by over 35%. The company's DDR5 and HBM shipments both have high ASP (average selling price), and ASP has significantly increased. Therefore, SK Hynix's ASP has experienced a countercyclical growth of 7-9%, driving its Q2 revenue growth of nearly 50% to reach 3.44 billion US dollars, ranking second in the industry and leading industry growth.
Samsung's DDR5 process is still 1Ynm, with limited shipments in the second quarter, and its average selling price has decreased by about 7-9%. However, Samsung's shipment volume has slightly increased due to the increase in module factory inventory and the demand for artificial intelligence server configuration. This resulted in a month on month increase of 8.6% in revenue in the second quarter, reaching $4.53 billion, firmly ranking first. Meiguang Technology, ranked third, is a bit late in developing HBM. However, DDR5 shipments account for a significant proportion, keeping its ASP relatively stable. Driven by shipment volume, its revenue was approximately 2.95 billion US dollars, with a quarterly growth of 15.7%. Both companies have seen a decrease in market share.
Overall, due to the continuous decline in contract prices for various products, suppliers continue to report negative operating profit margins. In the second quarter, Samsung's operating profit margin increased from -24% to -9%. SK Hynix's revenue and ASP's revenue have grown simultaneously, and the operating profit margin has significantly narrowed from -50% to -2%. On the other hand, Micron's operating profit margin has slightly increased from -55.4% to -36%. TrendForce expects the DRAM industry's revenue to continue to grow in the third quarter. After the supplier reduces production, the willingness to lower prices weakens, indicating that the contract price tends to stabilize and the future decline is limited. Therefore, the losses caused by the decline in inventory prices are expected to decrease, and the operating profit margin is expected to turn from loss to profit.
The shipment volume of Nanya Technology has decreased for four consecutive quarters. However, driven by television orders in the second quarter, its revenue increased by approximately 8.2%. Winbond's revenue increased by 6.9% in the second quarter, mainly due to the release of bidding in China and the increase in production capacity of KH factories, providing greater pricing flexibility and leading to an increase in order volume. PSMC's revenue mainly comes from its internally produced consumer DRAM products, excluding DRAM outsourcing services. Affected by sluggish demand, outdated manufacturing processes, and a lack of competitive price advantages, DRAM revenue decreased by approximately 10.8%. This makes PSMC the only supplier to experience a decline this quarter. If we consider the income from DRAM outsourcing, the decrease is 7.8%.
Overall, due to the continuous decline in contract prices for various products, suppliers continue to report negative operating profit margins. In the second quarter, Samsung's operating profit margin increased from -24% to -9%. SK Hynix's revenue and ASP's revenue have grown simultaneously, and the operating profit margin has significantly narrowed from -50% to -2%. On the other hand, Micron's operating profit margin has slightly increased from -55.4% to -36%. TrendForce expects the DRAM industry's revenue to continue to grow in the third quarter. After the supplier reduces production, the willingness to lower prices weakens, indicating that the contract price tends to stabilize and the future decline is limited. Therefore, the losses caused by the decline in inventory prices are expected to decrease, and the operating profit margin is expected to turn from loss to profit.
The shipment volume of Nanya Technology has decreased for four consecutive quarters. However, driven by television orders in the second quarter, its revenue increased by approximately 8.2%. Winbond's revenue increased by 6.9% in the second quarter, mainly due to the release of bidding in China and the increase in production capacity of KH factories, providing greater pricing flexibility and leading to an increase in order volume. PSMC's revenue mainly comes from its internally produced consumer DRAM products, excluding DRAM outsourcing services. Affected by sluggish demand, outdated manufacturing processes, and a lack of competitive price advantages, DRAM revenue decreased by approximately 10.8%. This makes PSMC the only supplier to experience a decline this quarter. If we consider the income from DRAM outsourcing, the decrease is 7.8%.