It has been observed that Samsung Electronics and SK Hynix have been targeting the expansion of the DDR5 memory market. The decision was made to recover the losses faced in the first quarter of this year. Since customers avoid buying DDR4. Therefore, as per analysts, increasing the supply of DDR5 memory can accelerate the chipmaker’s step out from the semiconductor market decline.
As per industry experts, out of three major players including Samsung Electronics, SK Hynix, and Micron. Whereas, SK Hynix is responsible for most of the supply of DDR5 RAM for servers. While Samsung predicted to initiate supplying DDR5 DRAM for servers from the end of the second quarter of this year.
DDR5 DRAM is the most recent DRAM specification introduced by the Joint Electron Device Engineering Council (JEDEC). This is reported to have their performance doubled than DDR4 DRAM. Since DDR4 DRAM took up the hold of the majority of the memory market. Therefore, DDR5 DRAM has a lot of scope and demand for replacement.
The key point is that both supply and demand are on the lower side. As big IT players avoid investing in new IT infrastructure until the first quarter of this year due to market variability. Although, from the second half of this year, chip makers have started anticipating much-supporting recovery factors as well.
Analyst’s Point of View
And because Samsung Electronics lagged behind SK Hynix in mass production of 10-nm DDR5 DRAM. Analysts believe that Samsung’s hold-up production of DDR5 DRAM. In order to secure the stability of its extreme ultraviolet lithography process in the long term.
According to market research firm OMDIA, DDR5 DRAM will account for 12 percent of the DRAM market this year, up from three percent in 2022. They are expected to grow to 27 percent in 2024, overtaking DDR4 (23 percent). As per market research from OMDIA, DDR5 DRAM will be responsible for 12 percent of the DRAM market this year. This is up by three percent with respect to 2022. While, they predict to grow to 27 percent in 2024, surpassing DDR4 by 23 percent respectively.