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| On the 1st, SK Hynix held a completion ceremony for the M16, which will mainly produce 10-nano-class DRAM products, at its headquarters in Icheon, Gyeonggi-do. . (Provided by SK Hynix) 2021.2.1/News 1 |
It is predicted that the price of DRAM, a memory semiconductor, will increase this year. Accordingly, expectations for an increase in earnings this year are growing for Samsung Electronics and SK Hynix, which boast more than 70% of the world’s combined market share (based on sales) in DRAM.
According to the industry on the 6th, the rise in DRAM prices in the first quarter of this year is expected to continue after the second quarter. According to Hanwha Investment & Securities, the server DRAM price (based on 32GB module) at the end of February rose 3.48% from the previous month to $119. Since DRAM prices are usually contracted on a quarterly basis, it is common for prices to change only in the first month of the quarter.
Lee Soon-hak, a researcher at Hanwha Investment & Securities, said, “The fluctuations in server DRAM prices in February can be seen as unusual and positive.” “I look forward to it,” he analyzed.
“The average selling price of DRAM in the second quarter (ASP) increased by 7% to 8%, compared to the previous 5%,” said Lee. “It is expected that the price of PC and server DRAM will increase by more than 10%. “He added.
Kim Dong-won, a researcher at KB Securities, said, “As of March, the DRAM market continues to have strong demand for mobile and PC along with the demand for bitcoin mining, and the demand for cloud by North American data center companies is increasing significantly. ‘ASP is expected to rise 5% in the first quarter, 10% in the second quarter, 11% in the third quarter, and 6% in the fourth quarter.”
Market research firm Trend Force also predicted an increase in DRAM prices in a recent report. The report said, “From the first quarter of this year, DRAM prices will rise on a rising cycle.” “As demand for PC, mobile, graphics, consumer DRAM, etc. is still solid in the first quarter, repurchases by major companies are also expected. As it started, DRAM prices are rising.” Trend Force predicted that server DRAM prices would increase by up to 15% in the second quarter of this year.
Meanwhile, according to Trend Force, Samsung Electronics ranked first in DRAM sales in the fourth quarter of last year with $7.44 billion. SK Hynix ranked second with 5.2 billion dollars. The market share based on sales is 42.1% and 29.5%, respectively. The combined share of both companies is 71.6%. Samsung Electronics has been the No. 1 in the global DRAM market for 28 consecutive years since 1992.