Is this time different for the DRAM market?

An interesting article about the boom and bust cycle of the DRAM market appeared on EE Times. On one hand you have companies and analysts predicting that the DRAM market is no longer the same as in the past, and will be a lot more stable because there are now only three major players (Samsung, SK Hynix, and Micron) and more diversified demand from big new sectors like mobile, cloud, and autonomous driving technology. However, on the other hand, other analysts say this is just more of the same, that DRAM is a commodity and that the violent price cycles will not end. You can read it at EE Times.

This diversified demand for DRAM is one reason why Micron sees the market as being fundamentally different than in previous years, said Sumit Sadana, executive vice president and chief business officer at Micron, in a telephone interview. Sadana also point to the consolidation of vendors in recent years.

“We believe the industry going forward is going to be a lot more stable than it has ever been in the past, and that is a function of the consolidation,” Sadana said. He added that Micron is being more thoughtful and cautious about capacity expansion and staying in sync with the demand trends and its customers’ requirements.