AI is booming, the price of DRAM for mobile servers is rising rapidly, and the price is expected to rise by more than 1 times in two years.

News reported on September 30 that due to the expansion of the generative AI market and the sharp increase in demand for servers built on data centers, the price of DRAM for mobile servers has increased significantly. The average price in two years is estimated to rise by about 1.3 times (about 130%), and the price difference between it and DRAM for PCs has expanded. DRAM is a memory used to store data regularly and is used for wide-ranging purposes such as smartphones, home appliances, car loaders, industrial machines, etc., with about 65% used on PCs and servers.

According to the US investigation company Omdia, the estimated price of server DRAM (price per GB, the same below) in October-December is US$4.3, which is about 2.3 times the level of 2 years ago (October-December 2023, US$1.9), and the estimated price of DRAM for PC is US$2.8, and about 1.8 times the price of 2 years ago (US$1.6). Although the price of DRAM for PC has increased, the price of servers has increased even more vigorously, and the price difference between the two parties has increased from about 20% to 50% two years ago.

report pointed out that the price of DRAM for servers is increasing rapidly, mainly due to the sharp increase in demand for AI servers. Currently, with the American technology giant "GAFAM", a data center for AI servers is being built. DRAM used on AI servers is called "HBM" (high-frequency wide memory), Omdia analyst Akira Nagano pointed out that at the same capacity, "the price of "HBM is about 5 times that of ordinary DRAM." Due to the high profitability of HBM, the global DRAM manufacturers Samsung Electronics, SK Hynix, and Micron, the United States, are reducing the production of DDR4 and discontinuing some products, turning the focus of production and sales to HBM.

Regarding the current DRAM-related market, Okamoto, the executive director partner of KPMG FAS, who is familiar with semiconductor industry, said, "HBM will become the main driving force for the expansion of demand."

Extended reading: China's HBM market demand surges, and Changjiang Stock Exchange Plan enters the ranks of DRAM production