Business DRAM consolidation means less output for more revenue

Business DRAM consolidation means less output for more revenue

2013/06/26

DRAM revenue could grow 30% this year, says DramExchange, while DRAM unit output could fall 24%, according to IHS.

That’s the result of consolidation with only three players – Samsung, Micron and Hynix – still standing.

The survivors will likely add capacity sparingly, and slow up on scaling, to balance demand with supply.

Meanwhile, for the first time in 30 years, PCs will give way to tablets and phones as the largest consumer of DRAM, says IHS, with the switch-over happening in 2015.

“PCs are no longer driving the action in the global electronics supply chain,’ says IHS

In 2015, the mobile devices will use $11.6 billion worth of DRAM while PCs will use $9.9 billion.

While the share of PCs in DRAM consumption fell to 41% in 2012—far below the 85 to 65% share seen throughout the 1980s, 1990s and 2000s—PCs remained the largest single DRAM market.

However, PCs will lose that distinction in 2015. Furthermore, their share of total DRAM sales will fall to 30 percent in 2014, to 28 percent in 2015 and 23 percent in 2016, down from 38 percent in 2013. By 2017, traditional PCs will account for only 22 percent of DRAM consumption.

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