50%
Plausible
As if the profits garnered from general-purpose DRAM weren’t enough for the three memory giants Samsung, Micron, and SK hynix, these companies also planned on deepening their pockets through the development of custom controllers for CXL (Compute Express Link), a next-generation technology designed to expand a server’s capacity. However, realizing that their lucrative customers won’t entertain spending a premium, the big three have reportedly abandoned development plans and are sticking with a universal input for standard DRAM.
CXL controller design will now be handled by other companies, but Samsung, Micron, and SK hynix won’t pitch the idea if there’s zero interest around it
The design work will be carried out by companies Primemas, Montage, and Astera Labs, with ZDNet reporting that Micron was the first to throw in the towel, followed by SK hynix. The latter has now allocated personnel to PIM (Processing-in-Memory), as it focuses on other growth engines rather than entering a space where there’s little success. As for Samsung, its work on CXL controllers is now limited to internal use within the research team.
Major server customers are probably doing fine with standard DIMM slots used to populate RAM, and don’t see the requirement of having to pay for proprietary, all-in-one, expensive CXL products. A more flexible option for customers would be to order standalone CXL controllers on the motherboard and plug in existing RAM. With this approach, customers looking to expand memory capacity while also wanting to lower costs will have their needs met.
Seeing as how server customers are the reason for the memory manufacturers’ success, they wouldn’t want to resort to any money tactics that would cannibalize their livelihood. For now, sticking to standard inputs will be the strategy for Samsung, Micron, and SK hynix moving forward, but since these companies are revising LTAs (Long-Term Agreements) on a quarterly basis, server clients could change their minds and resort to expanding memory capacity while paying a premium.
In short, it’s interesting how, despite having a vice grip on the global memory supply, Samsung, Micron, and SK hynix are bending over backward to please a specific group of customers to ensure their billions aren’t compromised. While the rest of the industry is forced to look for breadcrumbs, the memory makers are enjoying the spoils of the DRAM shortage.
News Source: ZDNet
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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