After two years of great growth, the 2019 outlook for the DRAM market looks dim. Research firm IC Insights predicts DRAM sales will grow 39 percent this year, on top of the 77 percent growth posted in 2017. But next year, the market will see tougher conditions. IC Insights predicts sales will decline by 1 percent.
But the historically cyclical DRAM market appears to be headed for tougher times in 2019. After two strong years of growth, the world's leading DRAM suppliers — South Korea's Samsung Electronics and SK Hynix and U.S.-based Micron Technology — have significantly expanded their manufacturing capacity and are beginning to ramp up production, bringing relief to strained supplies, especially for high-performance DRAM parts, IC Insights said. Meanwhile, shipments of large-scale datacenter servers — the primary catalyst for much of the recent DRAM market surge — have begun to ease amid uncertain economic and trade conditions, the firm said.