DRAM And NAND Flash Continue To Dominate The Integrated Circuit Market

DRAM And NAND Flash Continue To Dominate The Integrated Circuit Market

Preliminary figures for the integrated circuit market reveal that the most important revenue this year has again come from DRAM, despite the difficulties caused by the oversupply of chips. But the biggest growth comes from NAND Flash storage memory, which is expanding into new electronic devices and technology environments.

This year has been difficult for the economy, but certain markets, such as technology, have found something to hold on to overcome the crisis, even growing well above expectations. Although not much has been achieved in the case of integrated circuits, there has been a very positive overall performance, thanks in part to the performance of the DRAM and NAND Flash memory segments, which have been fueled by the unexpected growth in server sales, laptops, and other electronic devices that have increased their market during the pandemic.

According to preliminary figures from the latest report, prepared by IC Insights, each of the top five categories of integrated circuits has managed to increase their sales, mainly due to the increased demand for computer and communication applications. But the undisputed leader in this ranking is the DRAM memory market, which will close the year with an estimated sales of $65.2 billion, surpassing forecasts before the health crisis.

And it will achieve this even though the industry is immersed in a dangerous situation of oversupply, yes, still not as serious as that experienced in previous years. The second position, one more year, will be for the NAND Flash memory segment, which is followed by processors for computers, mobile phones, and specific-purpose logic products, which are finding new fields in which to expand their many possibilities.

IC Insights experts predict that at least looking to 2021, and DRAM memory will continue to lead the global market for integrated circuits, following the same line that it had maintained since 2017 when it achieved the highest volume of revenue in the industry. Likewise, they foresee that processors will retain the third position in the ranking, encouraged by the next server renewal cycle and by the significant sales of equipment that are taking place in the mass consumer environment, which could be maintained for several months in 2021.

As for other products such as MPUs, its market is supported by the growth in demand for high-end 5G processors, necessary for the new generation of higher-end mobile devices and devices necessary in the deployment of new networks. Finally, the experts at IC Insights emphasize that the NAND Flash memory market has seen the strongest growth this year, and they do not expect it to come to a complete halt next year.

In 2020 the increase was a remarkable 25%, mainly due to the strong orders placed by server manufacturers during the first quarter of the year. This led to an increase in prices that has remained more or less during the rest of the year, and it is expected that in 2021 sales could be very positive, even though manufacturers are excessively increasing their production, generating a new situation of oversupply. Of course, for now not as serious as that of DRAM memory.

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