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📦 Dynamic read-write random access (DRAM)

Dynamic read-write random access (DRAM)

HS Code:

📦

Overview

Dynamic Random-Access Memory (DRAM) falls under HS Code 8542.32, which includes electronic integrated circuits as memory. DRAM is a type of semiconductor memory that stores each bit of data in a memory cell consisting of a tiny capacitor and a transistor. It is widely used in digital electronics, particularly in computers, gaming consoles, and mobile devices, due to its high speed and efficiency. DRAM is volatile memory, meaning it loses stored data when power is turned off, necessitating constant refreshing of data. The global trade of DRAM is a critical component of the electronics supply chain, driven by demand for consumer electronics, data centers, and emerging technologies like AI and IoT.

Total Trade Volume

USD 92.5 billion

Data from 2022

Source

United Nations Comtrade Database, International Trade Centre (ITC)

Tariff Analysis

Average Rate

3.5%

Highest Rate

8.0% (imposed by certain developing countries)

Lowest Rate

0.0% (under free trade agreements like USMCA and EU-Japan EPA)

Common Restrictions

  • Export controls on advanced semiconductor technology due to national security concerns
  • Anti-dumping duties in specific markets to protect domestic industries
  • Import quotas in some regions to regulate market saturation
  • Compliance with environmental and safety standards for electronic components

Market Trends

Rising Demand for High-Bandwidth Memory (HBM)

Driven by AI, machine learning, and data center growth, HBM DRAM is increasing trade volumes for specialized memory products, benefiting key exporters like South Korea and Taiwan.

2022-2023

Shift to DDR5 Standards

Adoption of DDR5 DRAM in new computing devices is accelerating replacement cycles, boosting trade but creating supply chain pressures for older DDR4 inventory.

2021-2023

Geopolitical Tensions Impacting Supply Chains

US-China trade restrictions and export controls on semiconductor equipment are reshaping DRAM trade flows, with increased regionalization of supply chains.

2020-2023

Recent Developments

US Export Controls on Semiconductor Technology

The US imposed stricter export controls on advanced semiconductor manufacturing equipment to China, affecting DRAM production and trade routes.

October 2022

Increased production costs for Chinese manufacturers and potential trade diversion to other regions like Taiwan and South Korea.

South Korea’s DRAM Investment Boom

Major South Korean companies like Samsung and SK Hynix announced multi-billion-dollar investments in DRAM production to meet rising global demand.

March 2023

Solidifies South Korea’s dominance in the DRAM market, potentially increasing export volumes by 15-20% over the next five years.

EU Chips Act to Boost Domestic Production

The European Union introduced the EU Chips Act to reduce dependency on Asian DRAM imports by incentivizing local semiconductor manufacturing.

February 2023

May lead to a gradual decrease in import volumes from Asia and potential new trade barriers for non-EU suppliers.