Throughout 2017, DRAM manufacturers faced pressure to boost output of their devices-particularly high-performance DRAM used in data center servers, and low-power high-density DRAM used in smartphones and other mobile products. Strong, ongoing demand put significant upward pressure on DRAM average selling prices. This trend continued into 4Q17 and is expected to drive quarterly DRAM sales to an all time high mark of $21.1 billion (Figure 1), capping an incredible year of growth in which DRAM sales set a new all time high sales mark each quarter. The forecast $21.1 billion sales level in 4Q17 would be an increase of 65% compared to the $12.8 billion DRAM market of 4Q16.
Annual DRAM market growth of 74% is forecast for 2017, which would be the highest growth rate since the 78% increase in 1994-23 years ago-and 61 points more than the 13% average DRAM market growth rate from 1993-2017 (Figure 2). The expected 74% DRAM market growth in 2017 will mark the fourth time since 1993 that the DRAM market has increased by more than 50%. This near-historic high market spike in 2017 was brought on by several factors, including constrained supply attributed to a lack of major fab expansion plans, yield difficulties with leading-edge (≤20nm) processes, demand for high performance (graphics) DRAM from gaming systems and data center-based server applications, and increased average content for mobile DRAM used in smartphones.
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