JEDEC Releases DDR5 Specifications
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed.
JEDEC has released the DDR5 memory specifications for PCs and servers, a development which should benefit relevant inspection equipment and packaging players. In addition, DRAM makers such as SEC and SK Hynix are to enjoy higher ASPs amid increased demand for their products.
DDR5 specifications confirmed
The Joint Electron Device Engineering Council (JEDEC) has released the DDR5 memory specifications for PCs and servers. Enabled by this confirmation, mass production of DDR5 products should begin at end-2020, with full-scale market growth expected to kick in from 2021. By 2022, the global market portion for DDR5 is projected to surpass that for DDR4.
Versus DDR4, DDR5 offers the advantages of higher bandwidth and lower voltage. DDR5 boasts a maximum bandwidth of 6,400Mbps, double that for DDR4 (3,200Mbps). The maximum data rate per DIMM for DDR5 reaches 51.2GB/s. Even with this higher speed, the VDD for DDR5 is 1.1V, a level 8% lower than that for DDR4 (1.2V). Of note, LPDDR5 DRAM (used for smartphones) is installed in Samsung Electronics (SEC)’s Galaxy S20, which has been in mass production since the start of 2020.
Beneficiaries: Inspection equipment makers and packaging firms
Domestic beneficiaries of JEDEC’s confirmation of the DDR5 specifications are to include module PCB producer Simmtech and inspection equipment players UniTest and Exicon. Looking at relevant overseas players, we draw attention to PCB producers Unimicron and Nan Ya and inspection equipment makers Advantest and Teradyne. Of note, all seven of the above-noted players displayed notable earnings increases during the changeover from DDR3 to DDR4.
With the change in memory specifications set to boost replacement demand for inspection equipment, we note that the emergence of high value-added products tends to translate into higher ASPs for related parts. The coming of DDR5 should also benefit DRAM makers such as SEC and SK Hynix, as: 1) the emergence of new high bandwidth products is to spur PC and server demand; and 2) the appearance of high-priced products that do not require major changes in the front-end processes will likely push up ASPs.