DDR5 prices continue to fall for downstream manufacturers to bring a good opportunity to upgrade iterations of the product, Intel, AMD and other manufacturers are planning product generation conversion, DDR5 penetration rate will be further enhanced.
AMD will release the fourth generation of EPYC (Skylar) processor CPU codenamed “Genoa”. It is understood that AMD EPYC will be divided into three series, the standard model based on Zen4 “Genoa” (codenamed “Genoa”); Zen4C “Bergamo” (codenamed “Bergamo”), which emphasizes the optimization of computational density; and Genoa-Cache cache optimization based on Zen4. Cache cache optimization on top of Zen4, the Genoa-X series.
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It is worth noting that the new CPUs support 12 DDR5 memory channels, compared to 8 DDR4 channels in the previous generation, thus bringing AMD memory into the DDR5 era. It’s no coincidence that Intel, another major CPU maker, is also actively pushing up DDR5 penetration in the PC and server markets. The company’s Alder Lake CPUs for the PC/notebook sector have been shipped steadily and are gradually entering the release period; Sapphire Rapids for the data center sector will also be released in early 2023. In this regard, Everbright Securities believes that the launch of Intel and AMD CPUs that support the new generation of memory modules will drive the replacement of memory modules.
The penetration rate of DDR5 server memory modules will continue to rise in the future as mainstream server CPUs supporting DDR5 are shipped on a larger scale. With the release of demand from end manufacturers, the market for DDR5-related products has been hot recently. According to Taiwan Electronics Times, the supply of DDR5 capacity from upstream original manufacturers has increased, and high-end DDR5 7000MHz specification products are sold out on shelves. IDC, Trend Force and other market research agencies generally predict that DDR5 prices will fall by 20% in the fourth quarter, following a 20% drop in the third quarter, and may still fall by nearly 20% in the fourth quarter, with the price difference between DDR5 and DDR4 gradually narrowing. It is also DDR5 prices continue to fall for downstream manufacturers to bring a good opportunity to upgrade iterations of the product. The above-mentioned Intel, AMD and other manufacturers are planning product generation conversion, supporting DDR5 CPU products are emerging.
Hua An, Oriental Fortune Securities and other institutions agree that the server CPU generation upgrade wave is approaching, industry demand will be rapidly released, DDR5 replacement is about to accelerate. Institutions also further predict that the penetration rate of DDR5-related products will exceed 50% in the first half of 2024. And which manufacturers are expected to benefit from this wave of iterative trend? It is understood that, in addition to Micron, Samsung and other international manufacturers, A-share listed companies, the layout of DDR5-related products are Lanqi Technology, Juchen shares, Lanke Technology, etc.. According to Hua’an Securities, Lanqi Technology’s memory interface chip business is expected to benefit from the release of DDR5 memory interface chips and supporting chips in depth. At the same time, Juchen cooperates with Lantech to develop SPD products that support the new generation of DDR5 memory sticks. This product series has built-in SPD EEPROM, which is used to store information about memory modules and all configuration parameters of memory particles and related devices on the modules. Juchen’s EEPROM business will be boosted by the rapid penetration of DDR5, thus achieving high growth. It is worth noting that today (Nov. 3), Lanqi Technology and Juchen shares pulled up strongly. By the close of trading, Lanqi Technology closed up 10.61% and Juchen shares rose over 16%.
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Figure | Lanqi Technology Market Performance
Figure | Juchen Stock Market Performance
Editor: Huang Fei
