DDR5 Outperforms HBM in Profitability for the First Time — Semiconductor Equipment Market Set to Surge as Memory Makers Ramp Up Production
2026-07-03
Key Words：DDR5, HBM, Memory, Semiconductor Equipment
According to TrendForce's Q1 2026 research, 64GB DDR5 RDIMM server memory modules have surpassed HBM products in both per-wafer revenue and profitability for the first time. This marks a pivotal shift: the industry's profit engine is moving away from HBM—closely tied to AI GPUs—and toward DDR5 memory, driven by large-scale AI server deployments. The result? A new wave of DRAM capacity expansion is sweeping across the globe's leading memory manufacturers.
Memory Giants Go All In, Accelerating the Expansion Race
Micron's recently released Q3 FY2026 results were nothing short of explosive: total revenue reached $41.46 billion, a staggering 346% year-over-year increase; net profit surged nearly 14-fold; gross margin peaked at 84.9%; and data center DRAM revenue climbed over 650% year-over-year. The supply-demand imbalance in memory is expected to persist at least through 2027. DRAM average selling prices have risen nearly 300% from last year's trough, with AI server high-density memory demand serving as the primary growth engine.
In May of this year, Micron commenced 1α-process DRAM production at its Manassas, Virginia facility—a strategic move that quadruples the company's U.S.-based DDR4 wafer supply, addressing critical shortages in automotive, defense, aerospace, and other industrial sectors.
SK Hynix has unveiled an ambitious expansion roadmap, aiming to nearly double its DRAM monthly wafer output from approximately 550,000 to 1 million wafers by 2030–2031. The centerpiece of this expansion is the Yongin semiconductor cluster, where the first cleanroom's equipment move-in at Phase 1 has been advanced from May 2027 to February 2027. Once fully operational, it will add 360,000 wafers per month in DRAM capacity, supplementing the ongoing expansion at the Cheongju M15X facility.
Samsung, meanwhile, has taken the lead in shipping the world's first 12-layer 48GB HBM4E samples, securing its position in high-end AI computing memory, while simultaneously expanding its general-purpose DRAM lines to capture share across both fronts of the AI server memory market.
A Billion-Dollar Equipment Feast: Full-Chain Demand Unleashed
Whether overseas expansion or domestic fab construction, every DRAM capacity addition and process upgrade begins with one prerequisite: semiconductor equipment. A billion-dollar equipment cycle has officially arrived, and the spoils are flowing first to front-end core processes.
Lithography: As DRAM processes enter the sub-10nm era, multi-patterning and EUV have become non-negotiable requirements. SK Hynix alone has placed EUV lithography orders with ASML totaling approximately $8 billion, with deliveries extending through the end of 2027. The accompanying coat/develop track systems are scaling proportionally with the increased number of lithography steps.
Etch and Deposition: Together accounting for nearly 50% of DRAM fab equipment investment, these two segments stand to gain the most. As DRAM capacitors transition to three-dimensional vertical structures with aspect ratios exceeding 100:1, demand for high-aspect-ratio etch tools and atomic layer deposition (ALD) systems is growing rapidly. The push toward 3D stacking has further boosted etch equipment's share of total tool spend from 35% at the 32-layer node to 48% at 128 layers.
At the same time, supporting equipment is undergoing a value reassessment. High-aspect-ratio structures have rendered conventional cleaning methods ineffective, accelerating the adoption of advanced techniques such as supercritical fluid cleaning. CMP tools now play a critical role across shallow trench isolation, capacitor planarization, and multi-level interconnects, with tool count rising in lockstep with process complexity.
Reshaping the Landscape: Domestic Equipment Suppliers Gaining Ground
While established overseas players—backed by decades of technological accumulation—continue to dominate the high-end segment, Chinese domestic equipment suppliers are making impressive strides. With Innotron Menory's IPO registration on the STAR Market approved and YMTC completing its IPO coaching filing, the accelerated expansion of domestic memory fabs is providing local equipment vendors with invaluable validation opportunities and room for volume growth.
Today, Chinese-made equipment has advanced from peripheral support to core process integration:
NAURA supplies etch and thin-film deposition tools to leading domestic DRAM manufacturers; AMEC's plasma etch systems are in volume production for 3D NAND and DRAM; Piotech's PECVD equipment is deeply embedded in memory production lines; Hwatsing's CMP tools, ACM Research's cleaning systems, and Kingsemi's coat/develop track systems have all achieved large-scale deployment.
From isolated breakthroughs to systematic follow-through, domestic semiconductor equipment suppliers are steadily breaking down foreign monopoly barriers amid the current memory expansion wave.
Every technology iteration and capacity expansion in the memory industry ultimately hinges on supply chain collaboration and execution. Efficient coordination across the upstream-downstream value chain is the key to capturing this wave of opportunity.
IICIE: Your Gateway to the Semiconductor Full-Industry Ecosystem6
Positioned as the foundational pillar of the semiconductor industry, the International Integrated Circuit Innovation Expo (IICIE) consolidates high-quality resources spanning the entire manufacturing ecosystem—from wafer fabrication and packaging/testing to equipment, materials, core components, and chip design. IICIE 2026 has already secured commitments from a distinguished roster of exhibitors, including Binarysemi, Biwin Storage, Brite Semiconductor, Empyrean, Geehy, Hercules Microelectronics, Ingenic, Montage Technology, Semitronix, SevenStar, Starry Stone Tech, VIA Alliance Semiconductor, Viiyong, Yangtze Mason Semiconductor, ZTE Microelectronics, and others.>>>Get your free pass to visit
Powered by the synergy of three co‑located shows, elexcon (Shenzhen International Electronics & Embedded Expo) puts the spotlight on AI memory chips, high‑speed memory modules, and embedded storage solutions. Industry leaders, including Advantech, ARM, Kowin, SEGGER, TechWinSemi, YMTC, and many more, have already confirmed their participation.
IICIE, CIOE, and elexcon are complementary in positioning and interconnected in value chain—together forming a complete loop from semiconductor manufacturing and chip design to memory devices, interconnect components, and end applications, accelerating the deep integration of optics, chips, storage, and computing.
Seize the Billion-Dollar Equipment Opportunity — Join Us at IICIE 2026
As the billion-dollar equipment market unfolds, technological prowess and industrial collaboration will be the decisive drivers of success. Reserve your booth now to gain direct access to top-tier semiconductor supply chain players. Plus, a single badge unlocks entry to all three co-located exhibitions—IICIE, CIOE, and elexcon.
We eagerly anticipate your presence in Shenzhen this September for a premier gathering of the semiconductor community. Join us in co-creating the next-generation industry ecosystem.
About Co-located Events
IICIE 2026 co-locates with CIOE (China International Optoelectronic Exposition) and elexcon (Shenzhen International Electronics & Embedded Expo), jointly creating a mega event spanning 340,000 square meters for the optoelectronic, semiconductor and electronics industries.
·CIOE 2026 covers the entire optoelectronics ecosystem with 8 featured sub-expos including information and communication, precision optics, laser and intelligent manufacturing, infrared, sensing, display, AR & VR, photonic innovation. It serves as a one-stop procurement and networking hub for professionals seeking materials, components, equipment, and solutions.
·elexcon 2026 showcases electronics and embedded technologies, spotlighting embedded AI and edge AI, memory, SoC/MCU/MPU, wireless technologies, MEMS sensors, industrial power supplies, passive components, and advanced packaging solutions such as SiP and Chiplet. It offers a high-impact platform to expand downstream market reach and capture cross-industry business opportunities.
