▲ Q4 2021 DRAM Sales Ranking by Brand (Unit: Million USD, Source: TrendForce)
Samsung Electronics 9.4% ↓ · SK Hynix 2.8% ↑

In the fourth quarter of 2021, DRAM shipments decreased due to supply delays for end-user devices such as smartphones, servers, and PCs caused by the COVID-19 pandemic.

TrendForce announced in a report on the 17th that DRAM revenue in the fourth quarter of 2021 was $25.035 billion, down 5.8% from the previous quarter.

In response to this, TrendForce reported that the COVID-19 pandemic delaying the supply of end-user devices such as smartphones, servers, and PCs was one of the causes of the decline in DRAM shipments.

This situation is clearly evident in PC OEMs where DRAM inventory has accumulated for more than 10 weeks.

Shipments from most DRAM fabs decreased in the fourth quarter of 2021, and the downward trend in purchasing influenced the decline in DRAM prices.

Total DRAM production in the fourth quarter of 2021 fell 5.8% from the previous quarter to $25.03 billion, with only a few companies, such as SK Hynix, showing an upward trend.

Since the first quarter is the off-season for demand, regarding inventory disposal With the expected concentration, DRAM prices in the first quarter of 2022 are expected to face greater pressure than in the fourth quarter of last year, and production volume is also predicted to be lower.

In the fourth quarter of 2021, Samsung and Micron's shipments decreased by 9.4% and 8.3%, respectively.

Samsung's market share fell slightly by 1.7 percentage points from the previous quarter to 42.3%, but it firmly maintained its number one position.

SK Hynix took second place with 29.7%, 2.5%p higher than the previous quarter, while Micron took third place with 22.3%, 0.6%p lower than the previous quarter.

Looking at the financial reports for September to November of last year, the operating profit margins of Samsung, SK Hynix, and Micron decreased to 50%, 45%, and 41%, respectively.

TrendForce predicts that the downward trend in profit margins will intensify in the first quarter of 2022, and the decline in profits for DRAM suppliers will widen further.

It was also reported that increasing the proportion of advanced processes and optimizing the product portfolio are ways for manufacturers to minimize the impact of price pressure.

In the fourth quarter of 2021, demand for specialized DRAM end-user applications such as TVs and home appliances decreased significantly, and DRAM demand also froze due to the impact of material shortages in the supply chain.

This affected the sales performance of Taiwanese manufacturers focused on the consumer market.

In the fourth quarter of last year, Winbond's sales fell by nearly 4%, while Nanya Tech's sales decreased by about 10%, and its operating profit margin dropped to 37.5%.