The DDR5 DRAM market, which has higher speed and lower power consumption compared to DDR4 DRAM, is expected to grow rapidly from 2021. Analysts said that since the unit price of DDR5 DRAM is higher than that of DDR5 DRAM, it is expected to improve the profitability of memory chip makers.
Market research firm TrendForce predicted on Nov. 5 that DDR5’s share of the global PC DRAM market will surge from less than 1 percent in 2020 to 10 percent in 2021. TrendForce also said that DDR5’s share of the server DRAM market will increase from 4% in 2020 to 20% in 2021 and 15% in 2021.
DDR5 DRAM is the next generation of DRAM with a significant increase in speed and capacity compared to DDR4 currently used for general purposes. The maximum data transfer speed of DDR5 is 6,400 Mbps, which is double the 3,200 Mbps of DDR4 products. They operate at 1.1V, which is about 9% lower than DDR4 DRAM’s 1.2V, while their maximum capacity is 64 Gb (gigabit), four times that of DDR4 DRAM’s 16Gb.
Samsung Electronics and SK Hynix have completed development of their DDR5 DRAMs and are currently discussing their supply with major customers such as Intel. SK hynix officially released the industry’s first DDR5 DRAM in early October.
TrendForce said that customers like Intel and AMD can still load DDR5 DRAM onto their flagship products such as servers and CPUs, as storage semiconductor companies have completed product development. The largest customer, Intel, is expected to use DDR5 DRAM for its servers in the second half of 2021, and is expected to significantly expand the use of DDR5 DRAM in 2022.