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    Breaking News

    The Memory Market will Grow 40 Percent to $177 Billion in 2018

    Memory is now the primary market segment for semiconductor products.

    Related Content
    • Worldwide Semiconductor Revenue Grew 5.4% in 2020 Despite COVID-19: IDC
    • Sophisticated Technologies Shaping the Future of Electronics Manufacturing
    • Yole Développement Issues Status of the MEMS Industry Report
    • Pressure Sensors Market: Automotive, Consumer Segments Still Main Drivers
    • Semiconductor Market Growth Rate Peaks After a Strong 2017
    06.25.18
    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 revenue reaching US$126 billion. It represents an increase of more than 60% year-over-year. Yole Développement (Yole) Memory Team forecasts the memory market to reach US$177 billion in 2018, with 40% growth.
     
    Today two memory research services, DRAM Service and NAND Service have been developed by Yole Group of Companies. 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.
     
    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,” said Emilie Jolivet, division director, Semiconductor & Software at Yole.
     
    “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,” added 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. 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.
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