AI large language models require large amounts of memory and storage to run, and are currently in the early stages of AI technology deployment, and there is potential for exponential growth in AI commercialization.
With the gradual landing and extension of artificial intelligence applications, the demand for data center training and user-side inference continues to grow, which is expected to open up incremental space in the storage market.
In the domestic market, memory chips have always been the largest product category with the largest market share of integrated circuits, especially under the influence of rising memory chip prices, the scale of the memory chip market has been further improved.
In 2022, the domestic market sales will reach 593.8 billion yuan, and it is expected that the scale of China's memory chip market will approach 650 billion yuan in 2023. #Semiconductor##Storage##芯片#
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Memory chip industry overview
Memory chip refers to a semiconductor dielectric device that uses electric energy to store information, and its storage and reading process is reflected in the storage or release of electrons. On the one hand, the program code is stored to process various types of data, and on the other hand, the intermediate data generated in the process of data processing is stored, which is widely used in memory, USB disk, consumer electronics, intelligent terminals, solid-state storage hard drives and other fields.
The memory controller chip can handle different memory protocols, improve host communication stability and data transmission efficiency, and support the parallel management of multiple memory particles, expanding the overall capacity of memory products.
As the capacity and number of memory particles increase, the technical difficulty, added value and price of memory control chips will increase accordingly.
Schematic diagram of how the memory control chip manages the memory particles:
According to whether the information stored after power failure is retained, it is divided into volatile memory chip (RAM) and non-volatile memory chip (ROM).
Among them, DRAM belongs to RAM, and NAND Flash belongs to ROM.
The global memory chip products are mainly DRAM and NANDFlash, accounting for 53% and 44% of the market share, respectively, and NORFlash accounts for only 1%.
Source: Hengshuo Share Prospectus
INTESTINE
DRAM is a dynamic random access memory, which is the largest revenue in the memory segment, which can be divided into mainstream DRAM and niche DRAM.
The difference between the two is that mainstream DRAM is the mainstream specification of the market, and the production standardization is strong. Most of the niche DRAM products that have been retired from mainstream specifications are relatively low-end, accounting for about 10% of the total memory.
The mainstream DRAM market is highly concentrated, and its market is dominated by Samsung, Micron and Hynix, of which Samsung ranks first in the industry with 42%, followed by Hynix and Micron with 29% and 23% market share, and CR3 is as high as 94%.
DRAM Market Competitive Landscape:
Source: TrendForce, Galaxy Securities
Taiwanese manufacturers occupy half of the niche DRAM, Winbond and South Asia have a combined market share of nearly 60%, mainland manufacturers focus on niche DRAM, GigaDevice Innovation, Beijing Junzheng, Dongxin shares have a first-mover advantage. #6月财经新势力#
NAND Flash
Flash is a read-only memory, divided into NAND Flash and NOR Flash. Among them, NAND has become the mainstream product in the flash memory market due to higher storage capacity, lower unit cost and faster write speed, and is widely used in mobile phones, PCs, servers and other fields.
NAND Flash is a general-purpose non-volatile memory chip with large memory capacity and fast write/erase speed, which provides a cheap and effective solution for solid-state large-capacity memory.
NAND Flash is commonly used in solid-state drives, embedded and expanded storage for servers or electronic devices.
Compared to DRAM, the NANDFlash market concentration is low.
According to Omdia data, Samsung has the highest market share of 34%, Kioxia and Western Digital account for 19% and 14% respectively, followed by Micron and Hynix, CR5 has 89% market share, and mainland memory chip IDM leader Yangtze River Storage has a global market share of about 1%.
Car storage
With the transformation of vehicle electrification to intelligence, the massive data generated by autonomous driving will put forward higher requirements for storage bandwidth and capacity, increase the number of on-board intelligent chips, and increase the requirements for local storage of vehicles.
According to Semico Research, for L1 and L2 levels, the demand for storage capacity is not much different, generally configured with 8GBDRAM and 8GBNAND, while high-precision maps, data, and algorithms for L3 and above autonomous driving require large-capacity storage support.
A Level 3 autonomous vehicle will require 16GB of DRAM and 256GB NAND, and a Level 5 fully autonomous vehicle will require an estimated 74GB of DRAM and 1TB NAND.
According to Micron Technology and China Flash Memory, L2/L3 autonomous vehicles require about 100GB/s of memory bandwidth, and the average capacity requirements for DRAM and NANDFLASH are about 8GB and 25GB.
From the perspective of demand for memory products, the current in-vehicle entertainment (IVI) uses memory chips about 80%, ADAS accounts for about 10%.
Automotive DRAM is required between 4-64 GB for infotainment and digital instrument clusters, and 4-16 GB for rear-seat entertainment systems. NANDFlash is mainly used for digital instrument clusters that instantly generate large amounts of data, which require 64-512 GB of storage capacity, and rear-seat entertainment systems, which require 64-256 GB.
From the traditional central control screen to the increasingly intelligent car "brain", from the driving recorder to the intelligent voice-controlled vehicle interconnection terminal, the data and program storage of each functional unit of automotive electronics require higher-performance memory chips to ensure the normal operation of car navigation, entertainment systems, driving assistance, safety information backup and vehicle systems and other applications.
From the perspective of the competitive landscape, Micron Technology has an absolute leading market share of 45%, and has conducted LPDDR5 sampling tests, which is the industry leader.
Beijing Junzheng entered the field of automotive memory chips after acquiring Beijing Sicheng, and has reached close cooperation with downstream car companies such as Bosch Automotive and Continental. The improvement of automotive intelligence and the continuous upgrading of related technologies will also bring about the growth of demand for other types of automotive chips in addition to memory chips, and Beijing Sicheng's years of chip research and development experience focusing on the automotive and industrial fields will usher in new development prospects in the era of intelligent driving.
Global automotive DARM storage market share:
Source: TF Securities
The automotive storage market is expected to exceed $20 billion by 2030. In addition, driven by technologies such as the metaverse, AI, and the Internet of Things, consumer devices such as AR, VR, and MR have gradually increased, deriving a large amount of storage demand.
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