As we move into the third quarter of 2024, the global semiconductor industry is poised for significant growth, driven by rising demand in various computing sectors. Here are some key highlights:

🔹 Strong growth ahead:

• AI demand: The upswing in AI applications is driving the semiconductor market, expanding from AI servers to traditional servers, personal computers and smartphones.
• Memory prices: Memory prices are expected to grow at double-digit rates through 2024 and 2025, driven by increasing demand for high-capacity solutions.
• Consumer demand: While end consumer demand is lagging behind expectations, demand from companies continues to drive the market forward.

🔹 DRAM market:

• Revenue growth: Revenue in the DRAM sector rose by 5.1% in the first quarter of 2024. Overall sales growth of 75% is expected for 2024, with a further increase of 51% for 2025.
• Driving factors: High demand for HBM memory and rising average prices due to DDR5 and LPDDR5/5X generations.

🔹 NAND flash market:

• Revenue growth: Revenue in the NAND flash industry rose by 28.1% in the first quarter of 2024, with further growth in the second quarter. Overall revenue growth of 77% is expected for 2024, with a further increase of 29% for 2025.
• Driving factors: increase in high-capacity QLC enterprise SSDs and introduction of QLC UFS in smartphones.

🔹 DRAM and NAND flash prices:

• DRAM: Contract prices for DRAM are expected to rise by 13-18% in the second quarter.
• NAND flash: Contract prices for NAND flash have been adjusted by 15-20%, reflecting robust demand.

🔹 Technological developments:

• HBMs are expected to account for 5 per cent of total DRAM bits shipped in 2024.
• DDR5 DRAMs will account for around 40 per cent of server DRAM bit shipments in 2024, rising to 60-65 per cent by 2025.
• LPDDR5/5X DRAMs will increase to 50 per cent in mobile devices in 2024 and to 60 per cent in 2025.
• QLC enterprise SSDs will account for 20 per cent of NAND flash bit shipments in 2024 and increase further in 2025.

With Flexxon, SMART Modular Technologies and Alliance Memory, we have three strong partners at our side who are ahead of these trends and offer first-class solutions to meet the growing demands of the storage market. Contact us today to find out how we can support your project.