Semiconductor Cold Wave Breakthrough, Next-Generation DRAM 'DDR5'... Samsung and SK Near Realization of 'Super Gap' (Comprehensive)

Samsung and SK Preparing to Supply DDR5
Significant Shipment Increase Expected Next Year

Samsung Electronics DDR (Double Data Rate) 5 DRAM module power management semiconductor. (Photo by Samsung Electronics)

[Asia Economy Reporter Moon Chaeseok] Amid a cold wave sweeping the global memory semiconductor market, Samsung and SK are preparing a breakthrough with the next-generation DRAM standard, 'DDR5 (Double Data Rate) DRAM.' If they supply DDR5, a high value-added product, to next-generation server central processing units (CPUs) from global companies such as Intel and AMD, it is expected to become a 'super-gap' cash cow.

According to the semiconductor industry on the 12th, the next-generation CPU products from Intel and AMD, the world's top two CPU companies, are expected to be released around next month. Intel plans to showcase the server CPU 'Xeon Scalable Processor' (also known as 'Sapphire Rapids') and the 13th generation CPU 'Raptor Lake' at a developer event next month. AMD is also expected to unveil the Ryzen 700 series, a Zen 4-based desktop CPU, around mid-next month.

CPU companies such as Intel and AMD are important partners for major memory semiconductor companies Samsung Electronics and SK Hynix. DDR5 DRAM is a memory semiconductor that assists the CPU's computations. It is known to have about twice the processing speed compared to DDR4. In particular, DRAM used in server CPUs has a large market and wide applicability. CPU companies tend to change support processors such as DRAM when launching high-performance server new products.

With the acceleration of digital transformation, demand for high-performance and low-power memory semiconductors is expected to surge, making 'server CPUs and DDR5 DRAM' likely to go hand in hand like 'needle and thread,' according to industry views. According to global market research firm Omdia, DDR5 accounted for 3% of total DRAM shipments as of the third quarter. It is expected to expand from 1% in the fourth quarter of last year to 4% in the fourth quarter of this year, and 22% in the fourth quarter of next year. The share of high value-added server DRAM in the total DRAM market was 4% as of the third quarter. It is projected to increase from 8% in the fourth quarter of this year to 40% in the fourth quarter of next year.

The industry believes that the future dominance of the global memory semiconductor market depends on who supplies high-performance and low-power DRAM to server CPU companies. Samsung and SK are ready. Both companies have world-leading process technology at the 14nm (nanometer; 1nm is one-billionth of a meter) level. They are also diligently building mass production capabilities for 10nm-class DDR5 DRAM using extreme ultraviolet (EUV) lithography equipment. Samsung Electronics' DDR5 DRAM features data processing speeds of over 4800Mbps, about twice as fast as existing DDR4, and a maximum capacity expanded about fourfold to 512GB. By directly integrating power management ICs (PMICs) onto the substrate, power efficiency has been improved by more than 30%. SK Hynix shipped samples of its largest-ever 24Gb (gigabit) DDR5 product at the end of last year. It increased the existing DDR5 capacity from 16Gb to 24Gb and improved speed by up to about 33%.

With the acceleration of digital transformation, demand for high-performance and low-power memory semiconductors is expected to surge, making 'server CPUs and DDR5 DRAM' likely to go hand in hand like 'needle and thread,' according to industry views.

This content was produced with the assistance of AI translation services.