Memory chips are currently the fastest-growing segment in electronic component sales.
Now ranking second among the most sold semiconductor products globally, the memory market has experienced explosive year-on-year growth, up by 79.3% in 2024.
According to the Yole Group, Dynamic Random Access Memory (DRAM), including High Bandwidth Memory (HBM), is the highest-performing memory product. HBM revenue alone is projected to almost double this year, reaching around $34 billion.
This surge is largely driven by the increasing demand for artificial intelligence (AI) technologies, where high-speed, low-power memory is essential. HBM chips, in particular, are central to many AI systems. Consumer electronics and the automotive sector have also been highlighted as major consumers of memory products.
As of 2024, the DRAM segment commands a 45% market share, reportedly the highest across the entire memory segment.
HBM is a relatively recent innovation in the memory landscape. Known for its high bandwidth and low power consumption, it’s widely used in high-performance computing, AI, and data-intensive applications.
HBM utilizes 3D stacking technology, layering chips vertically and connecting them using through-silicon via (TSV) channels. This structure reduces the distance between memory and processor, greatly increasing transfer speeds and overall efficiency.
With its high bandwidth, lower energy consumption, and reduced heat output, HBM is the logical choice for AI and other compute-heavy operations. The 3D design also allows for more compact packaging, enabling increased chip density without compromising on performance.
While HBM is potentially the new kid on the block, it's far from the only driver in the memory chip market.
The ongoing expansion of consumer electronics, partly influenced by the rise of IoT-integrated devices, is adding further demand for various types of memory. The growing popularity of electric vehicles (EVs) and autonomous driving technologies is making memory a critical component in automotive systems.
Experts forecast a growing role for several emerging memory technologies in the near future, including:
• Resistive RAM (ReRAM): Gaining traction in medical, consumer, and industrial applications.
• Magnetoresistive RAM (MRAM): Offering advantages for aerospace and automotive sectors.
• Phase-Change Memory (PCM): With strong potential in consumer and automotive products.
These new technologies are expected to complement DRAM and HBM, pushing the memory market into new territories.
Despite the emphasis on next-gen memory like HBM, demand for legacy memory chips has not decreased.
Legacy nodes are defined as those produced with 28 nanometer technology and larger. More advanced chip nodes include 10nm, 7nm, and 5nm. Legacy chips continue to play a critical role in sectors such as automotive, industrial automation, and legacy computing.
With the production of these mature-node chips declining, especially outside of China, the need for them persists. This imbalance is already beginning to create market shortages, particularly for older or obsolete memory products.
Legacy DRAM and NAND remain among the most commonly used memory components. The longevity and durability of older types of DRAM, including DDR1, DDR2 and DDR3 are still highly valued and utilized globally.
Currently DDR4 is reaching end of life (EOL), with major manufacturers phasing out production in favor of the more profitable DDR5 or HBM. With this phasing out, remaining stock is being put on allocation, and prices are rising.
Over the next quarter, DDR4 prices are expected to increase between 40% and 45%. Many manufacturers are pre-empting the shortages by restocking early, exacerbating shortages and price hikes before the parts are even phased out.
How Lantek Helps
It can be difficult to source legacy components in a competitive market, with many parts already allocated. It can also be a struggle to source the parts from a reliable source, and many parts may go uninspected.
When it comes to sourcing electronic components, especially hard-to-find or obsolete semiconductors, Lantek Corporation is a trusted global partner.
With decades of experience in electronic component procurement, Lantek helps businesses across industries source the parts they need to keep production and operations running. Whether you're bridging a supply chain gap or maintaining older systems, our expert team can identify and deliver the legacy memory components your business relies on.
Need help finding obsolete electronic components?
Lantek Corporation specializes in procuring hard-to-find and obsolete electronic components. With thousands of lines ready to ship and a global sourcing network, we’re equipped to support you with all your electronic component sourcing needs. Call us today on 1-973-579-8100, or send us an email at sales@lantekcorp.com.
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