Global DRAM revenue is down nearly 30% in the biggest drop since the 2008 financial crisis

The Big Picture: The decline in demand for tech products this year continues to affect memory and other computer components. The most recent quarter saw prices fall again along with an unprecedented drop in revenue. Analysts aren’t sure when conditions will change, but manufacturers are cutting production and delaying transition plans in response.

According to TrendForce analysts, global DRAM revenue Drops By 28.9 percent in the third quarter of this year, compared to the previous quarter. The decline is the largest since the 2008 financial crisis.

Moreover, DRAM contract prices for the third quarter were down between 10 and 15 percent compared to the second quarter. to fall approx alignment With the forecast of TrendForce’s second-quarter report from July, when prices fell 10.6 percent year-on-year. Server DRAM shipments also declined in the third quarter.

Of the three largest DRAM vendors, Samsung experienced the biggest decline in revenue – down 33.5 percent. However, the company’s overall market share grew from 40 to 43 percent. SK Hynix and Micron each saw revenue declines by about a quarter. Micron’s drop was the smallest of the big three because it reports its numbers differently.

Among the six largest DRAM companies, Nanya had the largest revenue of 40.8% due to its greater reliance on DRAM and mainland China customers. PSMC suffered almost as badly, seeing a 40 percent decline in revenue in the third quarter from its in-house branded DRAM products. Finally, lower Winbond shipments caused revenue to contract by 37.4 percent.

This situation has caused suppliers to slow down their expansion plans and transition to new technologies. Low demand for camera modules has caused Samsung to restrict its transition from DRAM to CMOS image sensors. Micron is delaying its mass production 1-beta node to treat. Winbond reduced production in Taichung fab this quarter and delayed mass production in new Kaohsiung fab.

The market downturn caused RAM and SSD prices to go up slip throughout 2022. However, production cuts I mean, those prices may drop later this year, so users looking to take advantage of cheap memory and storage may want to do so soon.

In addition to SSDs and RAM, the drop in demand has also affected TVs, smartphones, Chromebooks, graphics cards, and other devices. Companies including Nvidia, Intel, Meta and Amazon have felt the pain, despite Apple’s latest quarter detained Company due to strong Mac sales.

In previous reports, analysts couldn’t say how long it would take for tech markets in the next year to start recovering. Now, TrendForce believes that DRAM vendors will face challenges adjusting inventory during the first half of 2023.

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