SK Hynix leads DRAM industry’s Q2 revenue rebound, retakes No. 2 spot
Jeong-Soo Hwang
Aug 25, 2023 (Gmt+09:00)
SK Hynix Inc. saw its DRAM chip shipments significantly increase in the second quarter, leading the industry’s overall revenue rebound, market data showed.
The South Korean chipmaker also regained its global No. 2 spot, leapfrogging Micron Technology Inc., which fell to third place.
SK Hynix posted a nearly 50% increase in DRAM shipments with its revenue reaching $3.44 billion in the April-June period, leading growth in the sector, according to market tracker TrendForce.
Shipments of DDR5 and HBM chips, in particular, both of which have higher average selling prices (ASPs) than other commodity DRAM products, increased significantly.
As a result, SK Hynix’s ASP grew counter-cyclically by 7-9% from the previous quarter, TrendForce data showed.
The Korean chipmaker witnessed simultaneous growth in revenue and ASP, narrowing its operating profit margin significantly from minus 50% in the first quarter to minus 2% in the second quarter.
SK Hynix’s market share rose to 30.1% from 24.4%.
SK Hynix's chip fab line in Korea SAMSUNG’S MAKRET SHARE SLIDES
Samsung Electronics Co., the DRAM market leader, experienced an around 7-9% drop in its ASP.
With its DDR5 process still at 1Ynm (14-16 nanometer nodes) and limited shipments, Samsung’s overall DRAM shipments rose by a mediocre 8.6% quarter on quarter to reach $4.53 billion in revenue.
Its operating profit margin improved from minus 24% to minus 9%.
Samsung benefited from module houses’ inventory buildup and increased demand for artificial intelligence (AI) server setups.
Samsung’s market share shrank to 39.6% in the second quarter from 43.9% in the first quarter, although it retained its top post.
Micron, the third-largest DRAM player, was a bit late in HBM development. But its DDR5 shipments held a significant proportion, keeping its ASP relatively stable, according to TrendForce.
Its market share slid to 25.8% from 26.9% with its second-quarter revenue standing at $2.95 billion.
SK Hynix's HBM3E DRAM chips are expected to be used in Nvida's latest GPU INDUSTRY PROFIT MARGIN TO TURN TO GAINS IN Q3
Combined with the inventory buildup for DDR5 on the client side, the second quarter saw all three major DRAM suppliers experience shipment growth.
The DRAM industry’s second-quarter revenue was $11.43 billion, marking a 20.4% quarter-on-quarter increase and halting a decline that persisted for three consecutive quarters.
Due to the continued decline in contract prices for various products, suppliers reported negative operating profit margins overall.
TrendForce said it expects DRAM industry revenue to continue to grow in the third quarter.
Following an industrywide effort to reduce production, there has been a diminished inclination to cut prices, which means that contract prices are stabilizing, and future declines will be limited, it said.
As a result, losses incurred from inventory price drops are anticipated to lessen, with operating profit margins expected to shift from losses to gains, it said.
Write to Jeong-Soo Hwang at hjs@hankyung.com In-Soo Nam edited this article.