According to the analysis report of the electronic device industry in China's report hall, in recent years, with the rapid development of artificial intelligence technology, especially the market demand for AI servers, has increased significantly, bringing new growth points to the memory chip market.
According to the "2024-2029 China Memory Chip Industry Market Development Monitoring and Investment Strategy Consulting Report" by the China Business Industry Research Institute, the size of China's memory chip market will be about 540 billion yuan in 2023. It is expected that driven by the wave of artificial intelligence, especially the new demand for memory chips brought by AI servers, the size of the memory chip market will resume growth to 551.3 billion yuan in 2024.
In the current memory chip market, DRAM (Dynamic Random Access Memory) and NAND Flash are two memory technologies that each occupy a significant share of the market. DRAM, with its high-speed read/write capabilities and volatile characteristics, plays a key role in data processing and computing tasks, accounting for about 55.9% of the market. NAND Flash is a non-volatile memory that can store data for a long time even in the event of a power outage, accounting for about 44.0% of the market.
Figure: China's memory chip market size is about 517 billion yuan
Market Drivers:
The new wave of artificial intelligence has brought new incremental demand for memory chips. With the rapid increase in demand for AI servers, AI PCs, AI Mobile, etc., the memory chip market has ushered in a new growth point. New DRAM technologies such as DDR5 and LPDDR5 are contributing to the rising proportion of original manufacturers' revenue, and are expected to usher in a golden period of development in 2024. New technologies such as HBM (High Bandwidth Memory) continue to break through, which also brings new vitality to the storage market.
The demand for memory chips in cloud computing and data centers, Internet of Things, artificial intelligence, smartphones and consumer electronics, automotive electronics, and more continues to grow. The rapid development of these fields will drive further growth in the memory chip market.
The global memory chip market is mainly controlled by international manufacturers such as Samsung, SK hynix, Micron, Western Digital, and Kioxia, but Chinese manufacturers such as YMTC and Changxin Storage are gradually emerging. Although Chinese manufacturers currently account for less than 4% of the global market share, the state has introduced a number of supportive policies, and with policy support and market demand growth, it is expected to achieve faster growth.
The memory chip market is expected to continue to benefit from digital transformation and data-driven demand, but it is also facing increasingly competitive markets. Chinese manufacturers still have a lot of room for improvement in technology research and development, production capacity improvement, market expansion, etc., and are expected to occupy a more important position in the global market.
