DRAM Revenue to Reach $40 Billion in 2010: Report

By Nathan Eddy  |  Print this article Print

While a Research and Markets report projects soaring revenues for the dynamic random access memory (DRAM) market, Samsung Electronics warms weak demand for PCs could hurt revenues in Q4 2010.

A report from IT market analysis firm Research and Markets projected the dynamic random access memory (DRAM) industry will experience robust growth in revenues throughout 2010. Worldwide DRAM revenue is expected to near $40 billion in 2010, up 81 percent from the $22 billion earned in 2009, according to the report. Global DRAM sales volumes are forecast to go from 11 billion in 2009 to 16 billion by 2010. Both DRAM shipments and average selling prices (ASPs) are anticipated to surge in 2010 due to stronger-than-estimated demand for PCs and mobiles.

The report covers the latest information on the revenue and volume of the DRAM market and provides a product-based forecast of DRAM up to 2020. The study also covers the key market trends and growth forecasts for a wide range of DRAM applications that include the computing, communication, consumer electronics and infrastructure sectors. This report is built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis by a team of industry experts, the company said.

The global DRAM market for consumer electronics is expected to grow at a compound annual growth rate (CAGR) of 12.3 percent during the forecast period 2010-2020. The report concluded that the advanced technology and small form factor of DRAM make it the first choice for use in consumer electronics, including in printers, car navigators, mobile phones, smartphones, gaming consoles, laptops and DVDs, among others.

The study also noted Microsoft's Windows 7 OS is likely to increase PC sales, thus giving a significant boost to the demand for DRAM: PC sales have a strong correlation to DRAM consumption, with computers being the largest consumers of DRAM. The report analyzes the market opportunities and challenges for the DRAM industry in the global arena, with market statistics for key countries such as China, Japan, Taiwan and South Korea analyzed and profiles of key companies such as Samsung Semiconductor, Hynix Semiconductor, Elpida Memory, Micron Technology, Nanya Technology and Winbond Electronics provided.

However, at Samsung Electronics' annual mobile solutions forum in Taipei, the company warned DRAM sales in Q4 will weaken due to reduced consumer demand for PCs. "If the PC market continues to slow, we may see a kind of oversupply in Q4 or Q1," Kwon Oh-hyun, head of Samsung's chip business, said in a Reuters report.