With the growing global demand for gaming, Samsung Electronics and SK hynix are both actively seeking to establish themselves in the market for “Graphics Double Data Rate (GDDR)” products. These products represent a specialized type of high-performance DRAM designed specifically to meet the needs of graphics processing. A recent report released on Aug. 27 by U.S.-based market research firm Industry Growth Insights (IGI) highlighted that the GDDR market, which is mainly used in gaming graphics processing units (GPUs), will expand to about $4.8 billion (equivalent to about 6.36 trillion won) by 2030 from its 2018 valuation of $3.2 billion.
This forecast represents a compound annual growth rate of 7.6%. Of note, in this industry, the faster GDDR variants known for their improved performance characteristics, including GDDR6 – which is primarily used in current gaming graphics cards – are expected to see double-digit year-over-year growth.
Graphics Double Data Rate (GDDR) memory is primarily used in GPUs and is particularly tailored for processing video and graphics tasks. However, it cannot achieve the same level of performance as High Bandwidth Memory (HBM), which is more commonly used in AI servers. Still, GDDR remains the preferred option for gaming GPUs designed for personal use. Currently, Micron, based in the U.S., holds a leading position in this particular sector, but both Samsung Electronics and SK hynix are closely monitoring this trend and naturally adapting.
In its recent quarterly earnings announcement on August 23, NVIDIA revealed a significant 21.7% annual revenue increase in the gaming sector. The GDDR memory used in NVIDIA’s GPUs comes primarily from Micron. However, Samsung Electronics uses High Bandwidth Memory (HBM) technology and is emerging as a potential key supplier for upcoming product generations, bringing strong competition from within the country.
The next step: Samsung Electronics was the first company to develop a functional GDDR7 memory. Following this, NVIDIA has provided samples to test the integration of this memory into next-generation systems. Furthermore, SK hynix is also on track to complete the development of its own GDDR7 memory by the end of the current year. In contrast, Micron’s strategy is not to introduce its own GDDR7 memory until the first half of the following year. As a result, NVIDIA, a major global customer in the GPU market, is expected to seriously consider Samsung’s product offerings for its upcoming lineup and may choose them over Micron’s alternatives.
Source: BusinessKorea
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