"Semiconductor Market to Rebound in Second Half of Next Year... DDR5 Demand Expected"

SK Hynix Introduces Semiconductor Market Outlook by Kim Young-geon, Senior Research Fellow at Mirae Asset Securities, on Newsroom

Kim Young-geon, Senior Research Fellow at Mirae Asset Securities / Source=SK Hynix Newsroom

[Asia Economy Reporter Kim Pyeonghwa] Amid an unprecedented downturn in the semiconductor industry, there are claims that the market could rebound in the second half of next year. It is also forecasted that demand based on the latest D램 (DRAM) standard, Double Data Rate (DDR)5, will fully materialize in the memory market next year. SK Hynix announced plans to proactively build a related portfolio to turn the current crisis into an opportunity.

"Rebound Turning Point in the Second Half of Next Year... Oversupply Will Be Resolved"

On the 20th, SK Hynix introduced semiconductor industry outlooks from Kim Young-geon, Senior Research Fellow at Mirae Asset Securities, on its newsroom. The content examined future market changes amid a historic down cycle in the semiconductor industry caused by a global economic recession and frozen consumer sentiment.

Kim said, "I expect the overall industry downturn to continue partially into next year," but added, "I anticipate a rebound turning point in the second half of 2023." He also explained, "Oversupply can be sufficiently resolved if given some time."

As the basis for this claim, Kim pointed to supply adjustments by semiconductor manufacturers. He noted that if the industry adjusts supply amid rising semiconductor inventory leading to price drops, positive market changes based on supply-demand balance can be expected.

Kim also explained that the recovery in smartphone memory demand could positively impact the market. He said, "Due to the prolonged lockdowns during the COVID-19 pandemic, China's consumer confidence index hit an all-time low this year," adding, "Lockdown conditions are expected to improve next year."

Source=SK Hynix Newsroom

DDR5 Market Blossoms Next Year... SK Hynix Strengthens Memory Portfolio

The emergence of replacement demand for the latest DDR5 standard in the server DRAM market is another factor leading to a positive market outlook. Kim explained that investments by global data center operators (hyperscalers) are increasing as new industries such as artificial intelligence (AI), big data, and the metaverse expand.

He said, "Looking at Meta, a representative global hyperscaler, they continuously announce aggressive investment plans in the metaverse industry, and data traffic is also growing," adding, "Since the scale of servers owned by hyperscalers keeps expanding, related investments inevitably increase."

Market research firm Omdia predicted that this year, demand for data center server DRAM will surpass mobile DRAM demand for the first time. It also forecasted that the share of DDR5 in total DRAM production will increase from 20.1% next year to 40.5% by 2025. In the semiconductor industry, Intel's server CPU 'Sapphire Rapids,' launching in January next year, is seen as a signal that will stimulate DDR5 market demand.

Amid these market trends, SK Hynix aims to seize opportunities with a solid technology portfolio. Recently, SK Hynix succeeded in developing the world's fastest server DRAM, 'MCR DIMM.' MCR DIMM is a new concept product that improves DDR5 operating speed at the module level. In August, SK Hynix also succeeded in developing the world's first 238-layer NAND flash, the highest currently available.

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