Global DRAM revenue jumped to $22.9 billion in the second quarter of this year, up 24.8% from the previous quarter, according to market research firm TrendForce on August 15. This surge was driven by increased demand for high-end memory chips such as high-bandwidth memory (HBM) and an overall rise in DRAM contract prices.
DRAM, short for dynamic random access memory, is a memory chip used in computers, smartphones, and servers.
Samsung Electronics, the leading DRAM manufacturer, posted $9.8 billion in revenue, up 22% quarter-on-quarter. SK Hynix, the second-largest player, recorded $7.9 billion in revenue, up 38.7% from the previous quarter. Micron’s revenue growth was more modest at 14.1%. “Key players Samsung, SK Hynix, and Micron all reported increased shipments in the second quarter compared to the previous quarter,” TrendForce said.
Higher sales of premium products such as HBM and DDR5 boosted the chipmakers’ DRAM revenue. HBM is usually six to seven times more expensive than high-end DRAM. “Expanded shipments of mainstream products boosted revenue for most chip manufacturers,” explained TrendForce. The average selling price of DRAM also rose by 13-18% compared to the previous quarter.
SK Hynix, the market leader in the HBM sector, notably benefited from growing HBM demand. HBM chips are crucial components of Nvidia’s graphics processing units (GPUs), which power generative AI systems such as OpenAI’s ChatGPT. SK Hynix has been the first chipmaker in the world to mass-produce and deliver the fifth generation HBM3E to Nvidia. This boosted the company’s DRAM market share from 31.1% in the first quarter to 34.5% in the second quarter, narrowing the gap with market leader Samsung Electronics to 8.4 percentage points.
During the same period, Samsung Electronics’ market share declined from 43.9% to 42.9%, while Micron’s share fell from 21.5% to 19.6%.
Trendforce forecasted that DRAM prices are not likely to falter for the foreseeable future. “Manufacturers are finalizing their 2025 capacity plans, with SK Hynix and Samsung prioritizing HBM production over DDR5, indicating that DRAM prices are unlikely to fall in the coming quarters,” the research firm said.
