Accelerated shift to bigger screen smartphones to accommodate multi-functions and multi-tasking has fueled demand for high-performance memory servers in mobile devices, bringing more boon to the world’s two largest memory chipmakers Samsung Electronics Co. and SK Hynix Inc. enjoying recovery in dynamic random access memory (DRAM) chips for PCs.

According to market researcher DRAMeXchange on Sunday, the prices for DDR (Double Data Rate) mobile memory chips are forecast to rise 10 to 15 percent in the first quarter of this year, more than double the price gain of 3 to 7 percent in the previous quarter.

The global trend of manufacturing smartphones with bigger displays is driving up the demand for DRAM chips for mobile devices, whose prices have plateaued from over investment.

Bigger-sized smartphones need to be powered by high-density DRAM modules to allow seamless multi-task like PCs and ultra high definition video as users spend more time on phones than PCs.

The world`s biggest smartphone maker Samsung Electronics`s upcoming flagship Galaxy S8 Plus will come with the company`s biggest 6.2-inch screens.

This year’s series of smartphones are likely to come in large screens to feature more cutting-edge specs and likewise fuel demand for higher memory capacity of up to 8-gigabyte (GB).

The average DRAM capacity for smartphones is expected to grow more than 25 percent to 6.9 GB by 2020 from 3.5 GB last year. In addition, around 63 percent smartphones in 2020 is projected to feature 8 GB mobile DRAM chips to make the capacity mainstream in mobile devices.

The surging demand for higher-capacity mobile DRAM modules will boost performance of Samsung Electronics and SK Hynix that are responsible for about 50 percent and 25 percent of global DRAM supplies respectively. Samsung Electronics starts mass-production of 8 GB DRAMs this year, and will beef up production from cost-cutting 10-nanometer-class wafer. SK Hynix will also soon release its own version of low-power 8 GB DRAM chip.

As of 11:04 a.m. on Monday, shares of Samsung Electronics rose 0.86 percent to 1,876,000 won in Seoul trading. SK Hynix shares rose 3.56 percent to 50,900 won.

By Lee Dong-in

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