<span style='color:red'>Server DRAM</span> Contract Prices to Fall by Over 20% QoQ in 1Q19 Due to Difficulties in Reducing Inventory
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Server DRAM Contract Prices to Fall by Over 20% QoQ in 1Q19 Due to Difficulties in Reducing Inventory

　　Contract prices of server DRAM are expected to fall by more than 20% QoQ in 1Q19, steeper than the previous forecast of 15%, reports DRAMeXchange, a division of TrendForce. The demand outlook remains weak due to high inventory levels and seasonal headwinds. Moreover, uncertainties brought by the China-U.S. trade war would also lead to conservative demand.　　According to Mark Liu, senior analyst at DRAMeXchange, the main reason for steeper price fall lies in the difficulties in reducing inventory. The DRAM suppliers’ fulfillment rate has improved from 90% in 4Q18 to 120% in 1Q19, indicating an oversupply in the market. Currently, the major operators of data centers in North America are holding fairly high levels of server memory inventory that can cover the usage for at least 5 to 6 weeks, while OEMs’ current inventory can cover around 4 weeks. Based on the previous production plans of the companies, their inventory levels have apparently doubled the normal levels or even higher.　　In terms of demand, after enjoying two years of strong demand growth for server systems, the server DRAM market is now seeing a tapering of its own demand growth. Demand from the upgrade to Intel’s Purley platform has started to wear off; memory component orders have also been fulfilled; a pessimistic economic outlook and uncertainties brought by China-U.S. trade war may also affect the DRAM market. As the general demand outlook becomes more conservative in the first half of this year, data centers and other server DRAM clients are anticipating falling prices in the future and are thus less keen on stocking up on memory components.　　On the supply front, major DRAM suppliers plan not to expand their production capacity actively this year in the fear of worsening market outlook. They also slow down the migration to advanced processes and high-density chips (eg., 16Gb mono die), trying to offset the oversupply.　　In order to reduce the inventory faster, suppliers have started to negotiate DRAM contracts as monthly deals since 4Q18, instead of quarterly ones. The quarterly lock-in deals have changed into quantity-based bargains, due to capacity expansion and increasing pressure from sales. With the emerging trend of build to order and low price, contract prices of DRAM products would continue to slide.　　On the whole, DRAMeXchange believes that the demand for servers will recover since 2Q19, with increased shipments to Chinese data centers and branded server makers worldwide. If the inventory problems are properly solved, server DRAM price decline may be moderated in 3Q19 and 4Q19, bringing the annual price fall to almost 50%.
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Release time：2019-01-23 00:00 reading：1778 Continue reading>>
Edge Computing Will Drive the Growth of Micro Server, Boosting the Demand for <span style='color:red'>Server DRAM</span>
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Edge Computing Will Drive the Growth of Micro Server, Boosting the Demand for Server DRAM

DRAMeXchange, a division of TrendForce, estimates that x86-based solutions will continue to be the market mainstream in 2018, with a global shipment share of 97%. Intel and AMD will continue to lead the development of server. Particularly, in the sector of Internet Datacenter, solutions based on the x86 architecture will still dominate the market due to its wide product range.According to Mark Liu, senior analyst at DRAMeXchange, enterprise servers contribute to around 60% of the global server shipments, while hyperscale server applications account for around 30%. The demand for micro servers used in edge computing is projected to see significant growth in the next 3 to 5 years due to the construction of data center and the implementation of 5G after 2020. This trend is also expected to drive the demand for related components and DRAM products considerably.The average content per box continues to see 20% annual growth in 2019 as Intel and AMD promote new platformsCurrently, x86-based solutions are still the market mainstream, while the penetration rate of Intel’s Purley platform has reached about 50%. Meanwhile, AMD has been migrating to products based on 14nm process. Previous product lines will be phased out as the wafer starts of 14nm process gradually increase. As for ARMv8 and RISC architecture, products are built to order at this stage with small production volume, mainly for the data center market. These two architectures are not able to compete with x86 servers until 2020, but may be adopted in more applications after that as the penetration rate of micro servers increases.In terms of the product roadmap, Intel's Cascade Lake will still be based on the third-generation 14nm process, but would not become the mainstream until the second half of 2019. AMD's new solution will migrate to the 7nm process, with its EPYC Series becoming the main product line this year. The AMD Rome platform server processor will also have a chance to come onto the market in the second half of next year.DRAMeXchange notes that, the penetration of new platforms may drive the average content per box. The average density of DRAM in servers will continue to see 20% annual growth in 2019.
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Release time：2018-07-26 00:00 reading：1042 Continue reading>>
3Q18 Contract Price Hike for <span style='color:red'>Server DRAM</span> Limited Due to Improved Supply, Says TrendForce
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3Q18 Contract Price Hike for Server DRAM Limited Due to Improved Supply, Says TrendForce

The shortfall in the supply of server DRAM may ease in the second half, as evidenced by the increasing average shipment fulfillment rate in the past several quarters, according to DRAMeXchange, a division of TrendForce.As a result, following the 10% sequential hike in contract prices in the first half, the average shipment fulfillment rate has topped 80% now, thanks to the adjustment of output share of server DRAM by DRAM suppliers, which has helped to ease the tight supply situation, says Mark Liu, the senior analyst of DRAMeXchange.DRAMeXchange points out that the prices of 32 GB server modules to be shipped to the first-tier firms in Q3 may advance by 1-2% to US$320. Meanwhile, second-tier makers will become benefited thanks to increased shipment fulfillment rates. Consequently, the range of quotes for Q3 contract prices will be limited.Meanwhile, affected by the increased penetration rates of Intel’s Purley and AMD’s Naples platform, the average density and penetration rate of 32 GB product lines will increase in the second half, sustaining the demands for server DRAM. The stocking-up demands for Intel's new solutions will remain robust, with shipment still mainly for data centers in North America and China. The penetration rate of Intel’s Purley platform is expected to approach 80% in Q4, up from over 50% now, while penetration rate of 32 GB server modules will exceed 70% by the end of the year, according to DRAMeXchange.In terms of the development of process technology, 20 nm will remain the mainstream process for DRAM this year and stocking-up demands for high-density server modules will continue to the end of the year, thanks to the effect of new platform solutions. Currently, the share of products featuring advanced process remaining low. In addition, die shrink technology will become increasingly complicated after the migration to 17 nm and 18 nm processes. Therefore, except Samsung which has applied 18 nm process in the mass production of server products, other DRAM suppliers will not begin increasing the share of products with advanced process until Q4, due to the consideration of product reliability.
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Release time：2018-06-25 00:00 reading：1041 Continue reading>>
Three Major <span style='color:red'>Server DRAM</span> Suppliers Score 10.3% Revenue Growth in 1Q18
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Three Major Server DRAM Suppliers Score 10.3% Revenue Growth in 1Q18

Despite the recent adjustments of product mix by suppliers, the supply of server DRAM remained tight in 1Q18, thus resulting in high average selling prices. Consequently, the total revenue of the three major server DRAM suppliers rose by 10.3% sequentially in 1Q18 to US$6.975 billion, according to DRAMeXchange, a research division of TrendForce.According to Mark Liu, senior analyst at DRAMeXchange, it is noteworthy that even with the influx of orders from data centers, the average share of advanced processes of server DRAM has remained low, as Samsung is the only supplier in the industry to have successfully expanded the share of its 18 nm technology in 2018. The migration of SK Hynix and Micron to the 18 nm and 17 nm manufacturing processes, respectively, have been constrained by their limited yield rates in Q1. Overall speaking, server DRAM supply is likely to witness an improvement in 2H18, following the inauguration of some new capacities and adjustments in product mix which will lead to higher product penetration rates.With the average content per box of server DRAM increasing along with the higher penetration rates of Intel’s Purley platform, the utilization rates of high-density and high-transmission server modules, such as DDR4 32 GB RDIMM 2666 MHz, picked up significantly in Q1 this year. The average margins of the three major DRAM suppliers for server DRAM also rose further.Samsung racked up 44.6% share on the server DRAM market in Q1, with revenues rising by 6.5% sequentially to US$3.108 billion. In terms of product development, the company has been focused on the market penetration rates of products featuring the 18 nm process, which will account for around 70% of its output by the end of this year, up from 50% now. Its focus on the advanced 18nm process has allowed it to maintain a massive lead over rivals in the cost structure and margin of server DRAM, as products based on 18 nm technologies enjoy a 20% improvement in cost over 20 nm products.In the second half, Samsung’s overall margins will also benefit from the successive launch of new DRAM capacity and continuing strong demand for contract production from data centers.SK Hynix staged a brilliant performance in Q1, when the company's overall server DRAM revenues advanced by 13.2% QoQ to US$2.251 billion, due to the large-scale shift of its capacity to server products at the end of last year, and the continuous rise of Server DRAM ASP in Q1.With regard to the company’s capacity planning, the share of SK Hynix’s cutting-edge process is still relatively low despite facing a continuous influx of server orders. Its products based on the 18 nm process accounting for a minor share in output, and the 21 nm process is expected to remain the mainstream technology for SK Hynix in the second half of this year.With strained supply boosting the sequential growth of server DRAM bit shipments, and larger-scale increases in quotes than Samsung and SK Hynix, Micron racked up US$1.616 billion in revenues for server DRAM products in Q1, a growth of 14.3% QoQ.Benefiting from the partial penetration of its 17 nm process and increased output of high-density modules, the overall sales of Micron scored significant improvements, with much of the growth coming from US data centers. Products with the 17 nm process is currently unlikely to be mass production until the first half of this year, as some problems remain unsolved.
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Release time：2018-05-17 00:00 reading：1056 Continue reading>>
<span style='color:red'>Server DRAM</span> Supply Expected to Remain Tight
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Server DRAM Supply Expected to Remain Tight

　　Server DRAM revenue among the top three DRAM vendors — Samsung Electronics, SK Hynix and Micron Technology — rose by 30 percent sequentially in the second quarter as the tight supply of DRAM chips continued to lift average selling prices, according to market watcher DRAMeXchange. The firm expects server DRAM supply to remain tight throughout the remainder of 2017.　　Despite product mix adjustments, suppliers had trouble meeting the various growing demands of the DRAM market, said DRAMeXchange, a unit of market research firm TrendForce that tracks memory chip pricing.　　"Thanks to the increase in the average memory density of server systems, as evidenced by the adoption of high-density 32GB RDIMMs and 64GB LRDIMMs in this year’s first half, the profit margin of server DRAM surged,” said Mark Liu, a DRAMeXchange analyst, in a press statement.　　DRAMeXchange said it expects the penetration rate of DDR4 2666MHz modules to rise in the second half of this year due to the introduction of servers based on Intel's Purley platform.　　South Korea's Samsung, the leading memory supplier and the leader in server DRAM market share, saw its second quarter server DRAM revenue rise by 36.5 percent sequentially to reach nearly $2 billion, DRAMeXchange said. Samsung continues to benefit from a commanding lead in the overall DRAM market and an overall lead in manufacturing technology, according to the firm.
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Release time：2017-08-15 00:00 reading：1069 Continue reading>>

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