There are concerns that Korean memory

●There are concerns that Korean memory companies' DDR5 prices will also fall due to concerns over the oversupply of DDR4 by China's CXMT. I think we need to look at the demand and pricing of DDR4 and DDR5 separately, what is it like? And what level of DDR5 technology is China's and can a situation that can lead to concerns about oversupply?

[DDR4 and DDR5 separate markets]

*Demand and pricing for DDR4 and DDR5 should actually be viewed separately.

1. market separation

• DDR4 is primarily used for legacy systems and low-cost products, while DDR5 is used for advanced systems such as high-performance computers, servers, and data centers.

• Currently, the demand for DDR5 and DDR4 in the DRAM market for PCs and servers is about 6 to 4, and generation change to DDR5 is rapidly progressing.

2. price premium

• DDR5 maintains a 30% higher price premium than DDR4.

• This reflects DDR5's performance advantage and increased demand.

3. corporate strategy

• South Korean companies such as Samsung Electronics and SK Hynix are focusing on manufacturing and selling DDR5 to counter China's low-cost DDR4 offensive.

*Therefore, the possibility of oversupply of DDR4 directly affecting DDR5 prices is limited.

[China's DDR5 technology and supply prospects]

1. a technological gap

• The technology gap between CXMT and Korean companies is estimated to be more than five years old.

• According to some analyses, CXMT's product bit density is only 55% compared to major memory companies, with a technology gap estimated at 6-8 years.

2. DDR5 Advancement Status

• There is an estimate that CXMT has recently started mass production of DDR5, but there is no solid information yet.

• Chinese companies are mainly focusing on lower-end memory such as DDR4 and LPDDR4X.

3. the possibility of oversupply

• For now, the supply of DDR5 from Chinese companies is not enough to cause excessive concern.

• However, CXMT's production capacity is rapidly expanding, which could potentially affect the DDR5 market in the future.

4. market impact

• If Chinese companies enter DDR5, it could affect global memory companies' market share.

• However, for now, the impact of DDR5 products from Chinese companies on the global market is limited.

*In conclusion, DDR4 and DDR5 markets are currently largely separated, and China's DDR5 technology is still behind Korean companies.

*However, given the rapid growth of Chinese companies, it is necessary to prepare for the possibility of competition in the DDR5 market in the future.