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DRAM revenue is expected to drop by 40% in the second half of the year

According to Taiwan’s Central News Agency, research firm IC Insights expects that DRAM (Dynamic Random Access Memory) revenue in the second half of the year will likely plunge 40 percent from the first half and that DRAM revenue for the year will decline 18 percent.

IC Insights said that system houses are actively stocking up for the year-end sales season, and the second half of the year is often the peak season for the DRAM market, but the DRAM market is not expected to be robust in the second half of this year.

The report pointed out that the weak economy and inflation slowed global demand for personal computers, smartphones and other consumer electronics products, which in turn affected the decline in DRAM demand, and DRAM revenue is expected to slide to $29.3 billion (about 209.788 billion yuan) in the second half of this year, a significant reduction of 40% from $49 billion in the first half.

According to the report, the three major DRAM factories Samsung, SK Hynix and Micron generally believe that inflation has weakened non-essential consumer spending, coupled with high inventory levels, the DRAM market is inevitably adjusting.

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