Supply chain sources indicate that general-purpose DRAM is expected to be in short supply as memory chip manufacturers expand production capacity for high-bandwidth memory (HBM).
Industry insiders report that the capacity utilisation rate for general-purpose DRAM chips from Samsung and SK Hynix is currently between 80% and 90%. This is in stark contrast to the full-speed production of NAND flash memory. Since the start of 2024, general-purpose DRAM capacity has only increased by around 10%.
In contrast to HBM DRAM, general-purpose DRAM refers to memory chips used in mobile phones and personal computers. With the growing popularity of artificial intelligence (AI), the demand for enterprise-class solid-state drives (eSSDs) has soared. This has led manufacturers like Samsung and SK Hynix to operate NAND production lines at full capacity in the second quarter of 2024. Additionally, due to improved market conditions, Kioxia ended its production cuts in June, restoring NAND capacity utilisation to 100%.
The industry believes that a rebound in demand for general-purpose DRAM cannot be ruled out. This will depend on the increasing adoption of AI capabilities in end-user applications.
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