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28.08.2023 21:32, Sergey Surabekyants
Growing demand for AI server systems has led to an increase in the supply of HBM memory. Combined with a surge in customer-side DDR5 inventory, the second quarter of 2023 saw an increase in shipments from all three major DRAM manufacturers. Industry revenue for the second quarter reached $11.43 billion, up 20.4% from the first quarter and ending the decline that had lasted three quarters in a row.
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SK hynix showed the largest increase in quarterly deliveries, more than 35%. Shipments of DDR5 and HBM with higher Average Selling Price (ASP) have increased significantly. As a result, ASP grew by 7-9%, which led to an increase in revenue for the second quarter of 2023 by almost 50%. With $3.44 billion in revenue, SK hynix ranked second in the industry, leading the sector in terms of growth.
Samsung, unlike SK hynix, showed a drop in ASP by about 7-9%. However, due to increased customer inventory and increased demand for AI servers, shipments still picked up slightly, resulting in an 8.6% quarter-on-quarter revenue growth of $4.53 billion, placing the company at the top of the list. position in terms of gross income.
Micron, which came in third, was a bit late with the development of the HBM. However, DDR5 shipments accounted for a significant share, keeping ASP relatively stable. The company’s revenue in the second quarter was about $2.95 billion, showing an increase of 15.7% compared to the first quarter.
In general, due to the continued decline in contract prices for various products, suppliers continue to report negative operating profit margins. In the second quarter of 2023, Samsung’s operating margin improved from -24% to -9%. SK hynix posted a concurrent increase in revenue and ASP, boosting the operating margin from -50% to -2%. Micron’s operating margin also improved slightly from -55.4% to -36%.
Nanya shipments have been declining for more than four consecutive quarters. However, thanks to orders for TVs in the second quarter of 2023, the company’s revenue grew by approximately 8.2%. Winbond’s second-quarter revenue rose 6.9%, driven primarily by tenders launched in China and additional capacity brought on line, which provided greater pricing flexibility and led to higher orders.
PSMC primarily generates revenue from its own consumer DRAM products. Due to low demand and not state-of-the-art manufacturing technology, devoid of competitive price advantages, PSMC’s revenue decreased by 7.8% compared to the first quarter of the year, making the company the only supplier to experience a decline in the second quarter.
Image Source: Trendforce
Experts believe that DRAM industry revenues will continue to grow in the third quarter of 2023. The systematic reduction in production by suppliers prevents further price reductions. It is expected that losses due to falling prices will decrease, and profitability will finally shift from losses to profits.
2023-08-28 18:32:00
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