Shulou(Shulou.com)12/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com, November 26 (Xinhua) with the increasing importance of the era of artificial intelligence in HBM, the DRAM industry has gradually begun to shift to a quality-centric winner-take-all pattern.

According to the latest analysis from market research firm Omdia, SK Hynix's DRAM market share reached 35% in the third quarter of this year.

Jung Sung-kong, a senior analyst at Omdia, said that the proportion of AI servers is increasing due to the impact of generative artificial intelligence, and the demand for AI is expected to continue to grow in the medium to long term. DRAM plays a more and more important role in artificial intelligence learning, which leads to the increase of corresponding demand. He highlighted the significant growth in HBM shipments, which is currently a key focus of AI memory.

He predicts that DRAM market revenue will grow at an annual rate of 21 per cent from this year to 2027, while HBM market growth is expected to reach 52 per cent. HBM's share of DRAM market revenue is expected to exceed 10 per cent this year and close to 20 per cent in 2027.

"the world's major IT companies are waiting in line for HBM," he added. "although HBM manufacturers plan to more than double capacity next year, the 52-week backlog of orders does not seem to be enough to meet everyone's demand."

The transaction price of HBM is already 5-7 times higher than that of standard products, and the replacement cycle is shorter, only 1-2 years. The market share of SK Hynix in DRAM is also increased due to the HBM effect.

"according to Omdia's survey, SK Hynix's market share reached 35 per cent in the third quarter, the highest since the company was founded," he said.

He expects the supply of HBM to fall short of demand for a long time. In addition, starting next year, DRAM is likely to pay more and more attention to high-end products like HBM, giving lower priority to mainstream products. Due to supply constraints, this shift may increase DRAM's bargaining power in terms of mainstream product prices.

"not everyone can enter the HBM market; in the next upward cycle, only a small number of companies with technological capabilities will dominate. This will lead to a shift in which technologically advanced companies continue to monopolize and generate profits."

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