DRAM suppliers overtime | SemiAnalysis

Source : SemiAnalysis

The risks inherent in “memory economics” are high. A highly commoditized product with elastic demand versus a capex-heavy, long-timeline, inelastic supply produces a challenging, cyclical market.

During the Windows PC supercycle of the early to mid-1990s, there were approximately 20 meaningful DRAM suppliers. Elevated demand and strong pricing attracted aggressive capital investment and new entrants. Subsequent downcycles systematically eliminated the weaker players. From roughly 20+ players in the mid-1990s, the number of players contracted to the mid-teens in the 2000s and early 2010s, to fewer than 10 relevant suppliers in the 2020s. Today, there are only 3-4 material suppliers.