Samsung and SK Prepare DDR5 Supply
Double Computing Speed...Broader Versatility
Significant Shipment Increase Expected Next Year
[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.' By supplying DDR5, a high value-added product, to next-generation server central processing units (CPUs) from global companies such as Intel and AMD, they are expected to secure a 'super-gap' cash cow.
According to the semiconductor industry on the 12th, the next-generation CPU products from the world's top two CPU companies, Intel and AMD, are expected to be released around next month. Intel plans to showcase its server CPU 'Xeon Scalable Processor' (also known as 'Sapphire Rapids') and 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 like Intel and AMD are important partners for major memory semiconductor companies such as Samsung Electronics and SK Hynix. DDR5 DRAM is a memory semiconductor that assists CPU computations. It is known to have about twice the processing speed compared to DDR4. Especially, DRAM used in server CPUs has a large market and wide applicability. CPU companies tend to change support processors like DRAM when launching high-performance server products. DDR5 DRAM is inseparable from big tech companies' server CPUs, like 'needle and thread.'
According to global market research firm Omdia, DDR5 accounted for 3% of total DRAM shipments in 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% in the third quarter. It is projected to increase to 8% in the fourth quarter of this year and 40% in the fourth quarter of next year.
The industry believes that the dominance of the global memory semiconductor market depends on who supplies high-performance, 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 a data processing speed of over 4800Mbps, about twice as fast as the existing DDR4, and a maximum capacity expanded about fourfold to 512GB. By directly integrating power management ICs (PMIC) 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. The capacity was increased from the existing 16Gb DDR5 to 24Gb, and the speed was raised by up to about 33%.
An industry official said, "DDR5 DRAM is a high value-added latest DRAM product equipped in server CPUs and is being promoted as the next-generation 'super-gap' item in memory semiconductors," adding, "We are thoroughly preparing collaboration with CPU manufacturing partners."
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