[News] DDR3 Memory Market Rebounds: Winbond, Etron, and ESMT Gain Momentum with Growing Orders

2023-11-14 Semiconductors editor

According to Economic Daily News’ report, the DDR3 market is experiencing a surge in prices, with an almost 10% short-term increase. Contract prices for this quarter are expected to rise by 10% to 15%, with a continued optimistic outlook for the first quarter of next year.

Market analysts point out that global leaders like Samsung, SK Hynix, and Micron currently dominate standard DRAM and NAND Flash. Taiwan-based companies are unable to compete with them in chip production, except for module companies which have the potential to capitalize on the rebound of the DRAM and NAND market due to their advantage of low-cost inventory.

On the other hand, DDR3 production remains primarily under Taiwan’s purview, and the price surge is significant, providing substantial assistance to Taiwanese memory industry players.

Industry sources indicate that the main impetus behind the current memory market upswing stems from the continual reduction in production by major international manufacturers. With tightening capacities, they are strictly controlling shipments, displaying their determination to support the price increases.

Besides, companies like Samsung, SK Hynix, and Micron are actively venturing into AI applications, shifting their main capacity to produce high-bandwidth memory, DDR5, and other advanced areas. This shift has created room in the DDR3 market. Recent replenishment of inventories on the client end, along with a surge in orders for consumer electronics, has been witnessed.

TrendForce indicated that DDR3 prices have been steadily rising since September. The cumulative increase for DDR3 4Gb has reached nearly 10%, while DDR3 2Gb has shown a cumulative rise of 14%; regarding contract prices, TrendForce expects a robust increase of 10% to 15% for this quarter, with a continued strength forecasted for the first quarter of next year, likely to rise another 5% to 10%.

DDR3-related companies are optimistic about market developments. Etron believes that with inventory digestion coming to an end, “the cyclical bottom is over,” and they are gradually heading towards the dawn of recovery. They hold a positive outlook for significant growth in the global DRAM market next year.

ESMT, on the other hand, continues to advance the progress of their in-house products. They are continuously developing new products in DRAM, Flash, and MCP, expanding into different markets. This includes accelerating the development of 19-nanometer DRAM, achieving mass production of 28-nanometer NAND Flash, and researching niche memory products for automotive applications.

Winbond’s General Manager, Pei-Ming Chen, points out that their operations for this quarter will be better than the third quarter and they have a positive view of the DRAM market for next year.

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