TrendForce has published the latest DRAM industry research report.
According to reports, the global DRAM revenue in the fourth quarter of 2022 was 12.28 billion US dollars, a quarter-on-quarter decrease of 32.5%, which even surpassed the 28.9% decline in the third quarter. The impact of the decline in the average price (ASP) of DRAM products.
Analysts pointed out that since Q3 last year, customers’ purchases have decreased, and DRAM manufacturers’ inventories have accumulated rapidly. Therefore, in order to seize the proportion of shipments in the fourth quarter, they had to fight for price cuts. Among them, server DRAM has the largest decline. Decrease by 23~28%; DDR5 prices extended to 30~35% month-on-month.
In terms of revenue, the revenue of Samsung, SK Hynix, and Micron all declined significantly. In the Q4 price war, Samsung cut prices most aggressively. Therefore, when the demand was declining, shipments did not decrease but increased. Although revenue reached 5.54 billion US dollars, down 25.1% from the previous month, Samsung’s decline was actually the top three. The lowest in the factory.
SK Hynix’s revenue was US$3.40 billion, down 35.2% month-on-month, and its revenue was facing a recession; Micron’s revenue was US$2.83 billion, down 41.2% month-on-month, and its revenue decline was also the largest among the three factories.
Analysts believe that due to the sharp decline in revenue, the operating profit ratio of each factory dropped rapidly in the fourth quarter of last year, and it is expected that the first quarter of 2023 will turn from positive to negative.
In terms of production capacity planning, due to the optimization of the old process production line, the production capacity of Samsung Line15 has declined slightly. The focus of capacity expansion is on the newly completed P3L. A small amount of trial production has begun in the first quarter of this year, which is the main force supporting the expansion of the total production capacity this year. SK Hynix announced a reduction in production in the fourth quarter of last year. The utilization rate in the first quarter of this year was 92%, and it is expected to further decline to 82% in the second quarter. The M16 production line in South Korea is an advanced process, so it maintains the original plan for a small increase in production. Micron has simultaneously reduced production in Japan and Taiwan, with a capacity utilization rate of 84%. The same level will be maintained throughout 2023. The new 1β process has been mass-produced at Micron’s Japan plant, and the Taiwan plant will start production in the middle of this year.
