The memory market will grow 40% to US$177 billion in 2018

Extracted from: NAND/DRAM Service – Memory research, Yole Développement, June 2018


  • Memory is now the primary market segment for semiconductor products.
  • Every application is pushing NAND demand to new height.
  • Megatrends are pushing more DRAM into products, leading to a record 2018.
  • NAND/DRAM: what can we expect in the upcoming quarters?

LYON, France – June 21, 2018: The semiconductor industry posted record results in 2017, with revenue exceeding US$400 billion. Overall demand for semiconductor devices was robust throughout the year, driven by the growing adoption of electronics components across all applications, with particular strength in the mobile and data center markets. Semiconductor growth in 2017 was led by the memory segment, with impressive revenue reaching US$126 billion. It represents an increase of over 60% year-over-year. Yole Développement (Yole) Memory Team forecasts the memory market to reach US$177 billion in 2018, with 40% growth.

Under this dynamic ecosystem, Yole and its partners System Plus Consulting and Knowmade, all parts of Yole Group of Companies, deeply scan the memory area. They propose today valuable memory services to deliver world class research, data and insight. Their aim is to ensure its clients are well-versed in all aspects of this competitive industry. Yole Group of Companies leverage decades of industry experience and expertise while partnering with its clients to make sure they are consistently well-informed on this pushy market.
Today two memory research services, DRAM Service and NAND Service have been developed by Yole Group of Companies. Full description of both services are available in a new dedicated Memory section on i-micronews.com. In addition, a selection of technology & market news are daily selected by Yole’s memory team and posted in this section.

Make sure to collect deep insights and significant analyses from leading industry experts, combining over 50-year experience in memory and semiconductor-related fields.

Both DRAM and NAND markets were in a state of undersupply throughout the year, leading to rising prices and record revenue and profitability for the memory suppliers. Demand was very strong, led by mobile and data center / SSD and augmented by emerging growth drivers including AI , IoT and automotive. Supply growth across both DRAM and NAND was constrained, due to a combination of limited wafer growth and technological challenges.

The current macro trends of AI and machine learning, mobility, and connectivity, are favorable to both the DRAM and NAND markets, and will likely result in Memory continuing to increase its share of the overall the semiconductor market.
“Understanding memory supply/demand dynamics and its relationship with pricing is vital to understanding the broader semiconductor market and all associated supply chains”, asserts Emilie Jolivet, Division Director, Semiconductor & Software at Yole.

The DRAM market is constantly evolving and changing. Yole Group is announcing a 22% CAGR for bit demand over the next five years.
“New Chinese suppliers threaten the current market balance, and emerging memory technologies are poised to cannibalize huge chunks of DRAM demand while the demand drivers of the past, including PCs and smartphones lose steam and no longer push industry demand,” comments .Mike Howards, VP of DRAM & Memory research within the Semiconductor & Software division at Yole.
In parallel, NAND market is expected to set another revenue record in 2018, before a flattish 2019. Therefore it continues to expand, with several consecutive quarters of record revenue and profitability for suppliers.
NAND’s competitive landscape remains incredibly dynamic. Samsung is prepping its first fab at its massive Pyeongtaek site; Intel is emerging as a stand-alone supplier with capacity in China; and the sale of Toshiba’s memory business to a consortium led by Bain Capital is finally happening. Meanwhile, a new entrant looms on the horizon: China’s Yangtze Memory Technologies Co. (YMTC), which threatens to disrupt the status-quo as well as multiple other Chinese projects.

“NAND demand remains robust, with strong growth for enterprise SSDs in data centers, increasing adoption of SSDs in laptop PCs, and continued content growth in smartphones and other mobile devices,” asserts Walt Coon, VP of NAND and Memory Research at Yole.“These segments will continue driving the bulk of NAND bit consumption, though several emerging trends are poised to augment future growth, including AI and VR adoption, automotive, and IoT,” he adds.

Memory Research Service from Yole, provides all data related to NAND/DRAM revenue per quarter, NAND/DRAM shipments, pricing per NAND/DRAM type, near and long-term revenue, market share per quarter, CAPEX per company, and a market demand/supply forecast. It also includes a complete analysis and details on the demand side, with a deep dive into client and enterprise SSD, data centers, mobile, automotive, graphics, PC, and more. Each Memory Research Service is composed of both products, the Quarterly Market Monitor and the Monthly Pricing Monitor.
During the next few weeks, Yole’s Memory Team will attend a selection of key trade shows and conferences to present the Memory Research Services. Make sure you will be there and ask for a meeting right now. Mike Howard and Walt Coon will for example be at SEMICON West mid-July and the Flash Memory Summit (Santa Clara, CA, North America – From August 6 to 9) in August. More information: Yole’s Agenda

Feel free to contact us right now to set-up face to face discussions. Contact: Fanny Vitrey, Marketing & Communication Assistant, Yole Développement (vitrey@yole.fr).

SSD : Solid-State Drive
AI : Artificial Intelligence
IoT : Internet of Things
CAGR : Compound Annual Growth Rate

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