According to the results of Q4-2022 sales data shared by TendForce, the manufacturers of memory chips have experienced a significant drop in global DRAM revenue, which fell by 32.5% compared to the 3rd quarter of 2022 and amounted to $12.3 billion.
The sharp decline in sales is due to the DRAM’s average selling price, and a freeze in buyers’ demand resulted in a significant buildup of inventories for DRAM vendors in the 3rd quarter of 2022.
Due to the competition for market share, suppliers were thus significantly more active during price negotiations for the 4th quarter of 2022 contracts. Server DRAM was one of the significant DRAM product groups that suffered the biggest price drop in the 4th quarter of 2022.
Contract pricing for server DRAM products, including DDR4 and DDR5, experienced quarter-on-quarter drops by 23–28% and 30–35%, respectively.
If we talk about the trio of leaders in the DRAM market, then last quarter, they received more than 95% of the total revenue. Samsung’s market share rose to 45.1%, with SK Hynix finishing the quarter at 27.7% and Micron at 23%.
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