Micron Increases DDR5 and GDDR6 Memory Production

Micron announced this week that graphics memory sales increased in the third fiscal quarter (ending June 2). RTX 40 series graphics cards with Ada Lovelace architecture, which will be released soon, will use the company’s GDDR6 and GDDDR6X DRAMs. On the other hand, AMD’s Radeon RX 7000 series with RDNA 3 architecture will still rely on Micron’s chips.

Micron CEO Sanjay Mehrotra said in a statement:

Chart revenues grew at a strong year-over-year rate in the third fiscal quarter, driven by the strength of Micron’s products and customer relationships. We also announced shipments of our new 1z 16Gb GDDR6X offering twice the capacity and up to 15% higher performance than the previous generation.”

On the Micron side, things are going well and GDDR6/GDDR6X DRAM shipments are said to be increasing. It is estimated that game consoles do not have a very high impact on GDDR6 memory sales. So the demand is probably coming mainly from video card and gaming laptop manufacturers.

On the other hand, graphics card prices fell over time and stocks began to become saturated. This may have increased video card sales. Jon Peddie Research says that in the first quarter of 2021, 11.77 million external desktop graphics cards were shipped. In the first quarter of 2022, this figure reached 13.4 million units. Therefore, companies such as ASUS, Gigabyte and MSI produced more graphics cards using these memories.

AMD’s Radeon RX 7000 series graphics cards will be announced in a few months. In addition, NVIDIA is preparing to launch its GeForce RTX 40 series GPUs. These new products are probably behind Micron’s production increase.

Micron stated that PMIC (power management circuits) and VRM (voltage regulator modules) resources are developing for DDR5 memory. This means that DDR5 RAM production has increased and prices will be positively affected.

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