Report: 1b DRAM Wafers Cost 54% More Than TSMC N2 Per Square Millimeter
A new report indicates that 1b DRAM wafers are priced 54% higher per square millimeter than TSMC's advanced N2 wafers. Persistent memory shortages are driving this cost disparity.
The cost of 1b DRAM wafers has reached $0.654 per square millimeter, a 54% premium over TSMC's N2 wafers, which cost $0.424 per square millimeter, according to recent data from South Korean semiconductor analysis firm Kernel Insight. The 1b designation refers to DRAM manufactured using a process node below 10 nanometers, crucial for producing DDR5 memory modules, especially high-capacity variants.
This cost differential is notable because the manufacturing process for 1b DRAM is less complex than TSMC's N2 node, which involves advanced techniques like multi-patterning and extreme ultraviolet (EUV) lithography. Typically, simpler manufacturing processes lead to lower unit costs.
Industry analysts attribute this pricing anomaly primarily to a persistent global shortage of generic DRAM. The surge in demand for AI servers, which require high-bandwidth memory (HBM) and large-capacity DDR5 modules, is outpacing the production expansion efforts of the top three memory manufacturers.
The current pricing structure is not expected to normalize in the short term. Executives anticipate continued price increases until at least mid-2027, with ongoing investments in next-generation memory production by major players like SK Hynix.