January 14, 2025 /SemiMedia/ — DRAM manufacturer Nanya Technology recently stated that the DRAM market may bottom out in the first half of 2025, with consumer demand expected to gradually recover starting in the second quarter due to regional economic stimulus measures.

Nanya highlighted that AI-driven demand for DRAM in cloud data center servers continues to grow. Additionally, edge AI computing is expected to expand into end-use applications such as AI PCs, AI smartphones, and AI robots. However, demand improvement in general PCs, smartphones, and consumer electronics remains limited.

On the supply side, Nanya noted that overall DRAM production will increase in 2025, with new capacity primarily focused on high-bandwidth memory (HBM) and DDR5 products. Meanwhile, inventory clearance for conventional DRAM (DDR4/LPDDR4/DDR3) is still ongoing.

In terms of demand, AI and general server needs remain robust, while smartphone manufacturers are gradually normalizing inventory levels, potentially improving the supply-demand balance in the first half of 2025. The PC market is benefiting from enterprise device replacement cycles and the growing adoption of AI PCs, which are driving higher DRAM content per device.

Additionally, according to a recent report by market research firm TrendForce, the DRAM market is expected to see significant price declines in the first quarter of 2025, with PC DRAM prices likely dropping by 8%-13%. Although DDR5 adoption is steadily increasing, it has yet to fully offset the oversupply of DDR4 modules. Consequently, PC manufacturers are leveraging lower prices to boost inventory while remaining cautious to avoid overstocking amidst uncertain demand trends.