Questions on memory industry boom&bust cycle (Micron & Hynix)

[techcossack]

Dear all,

I was looking at these Micron and SK Hynix data (Samsung data incomplete), and one thing confuses me: i know the memory industry has a boom&bust cycle, but why doesnt it show on revenues, instead on gross margin and operating margin etc?

as far as I know - the cycle is mostly manifested by a rise and fall of demand and averse age selling prices, so should be seen on revenues. Instead…they show up on gross margin and operating margin, which mostly reflect sale costs and operating costs.

 

[jms_embedded]

Time frame is too short. Cycle is ~ 4-5 years.

I don't have a graph that shows recent revenue for each manufacturer over a longer time frame (you could certainly go back further, say to 2015) but here are some examples of the memory cycle:

(source: https://thememoryguy.com/micron-debuts-16gb-1znm-ddr5-dram-chip/)

or long-term about the industry as a whole:

(from https://smithsonianchips.si.edu/ice/cd/MEMORY97/SEC02.PDF)

 

[techcossack]

Nevertheless, somehow price fluctuation is more obvious on the margins, and that’s the most puzzling part.

 

[jms_embedded]

Nevertheless, somehow price fluctuation is more obvious on the margins, and that’s the most puzzling part.

You may be seeing seasonal fluctuations in expenses; I don't know. Again, time frame is too short.