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Continued growth predicted for DRAM industry

TAIPEI -- The output value of the global dynamic random access memory (DRAM) industry is expected to register annual growth of 30 percent over 2014, driven by strong demand from mobile devices, according to a local market advisory firm.

After a strong recovery in 2013 following the consolidation of the market, the value of global output for the DRAM industry this year is expected to reach US$45.9 billion, up 33 percent from the previous year, DRAMeXchange said in a research note dated last week.

Industry profits will increase in both 2014 and 2015 as the average industry prices stabilize under restrained supply growth while manufacturers cut down overall spending, Avril Wu, assistant vice president of DRAMeXchange predicted.

The industry is poised to become more profitable with support from top three manufacturers Samsung Electronics Co. and SK Hynix Inc. of South Korea and U.S.-based Micron Technology Inc., she added.

As for technological advances, the annual bit growth for the DRAM industry could reach 27 percent in 2014, as an increasing number of manufacturers push towards the 20 nanometer manufacturing process, said Wu.

The industry's transformation into what is essentially an oligopoly has brought orders to the supplier market, making profitability the priority, the analyst said.

Armed with power-saving features, mobile DRAM has managed to penetrate both the individual PC and server markets, and it could eventually be used in wearable computers. Mobile DRAM will account for more than 30 percent of the total revenues of the global DRAM industry by the end of 2014, replacing PC DRAM as the mainstream product, she predicted.

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