ADATA, a leading memory module factory, announced that it achieved a record-breaking consolidated revenue of NT$3.848 billion in April, marking an 80% increase from April 2023. This growth contributes to a cumulative revenue of NT$14.729 billion for the first four months of 2024, representing a 50% increase compared to the same period last year.
The company attributes this substantial growth to a healthy industry inventory level and a strategic shift in production capacity by upstream suppliers towards high-bandwidth memory (HBM) and DDR5 products. This transition is in response to rising DRAM and NAND Flash contract prices, which are expected to continue boosting the company’s gross profit margins throughout the quarter.
Chen Libai, chairman of ADATA, highlighted the impact of artificial intelligence (AI) applications on the memory sector. With new AI terminal products launching in Q3, a surge in demand for AI-related memory solutions is anticipated in the latter half of the year and into the next. However, the production of HBM is challenging due to high complexity and capacity consumption, leading to constrained supply and sustaining high DRAM prices through 2024.
In the NAND Flash segment, despite a return to profitability by upstream suppliers and increased production capacity utilization, careful management of price and production continues. The recovering demand for SSDs in enterprise and data center applications is expected to further support rising and stable NAND Flash prices.
For April, ADATA’s revenue from DRAM constituted 37.85% of the total, while SSDs contributed 22.45%, and other products like memory cards and flash drives accounted for 39.7%. The company’s strategic adjustments and focus on cutting-edge memory technologies position it well to capitalize on emerging market trends and forecasted growth in AI and data storage demands.
