Micron’s GDDR6 solution
Micron Technology (MU) is positioning itself as a specialized memory solutions provider to reduce the impact of memory prices on its earnings. In 2016, Micron was the only company to launch the GDDR5X (graphics double data rate) DRAM (dynamic random access memory) as an upgrade to GDDR5.
In October 2017, Micron announced GDDR6, which enabled the memory ecosystem in January 2018 and started volume production of the chip in June 2018. Initially, Micron aims to release its 8 GB (gigabyte) GDDR6 memory chips in two variants: 12 Gbps (gigabytes per second) and 14 Gbps memory speeds. It plans to launch a third variant with 16 Gbps memory speed in the near future. GDDR6 will consume 1.35 V (volts) of power opposed to GDDR5’s 1.5 V.
The first GDDR6 memory chips will be used in Nvidia’s (NVDA) upcoming gaming GPUs (graphics processing units).
Micron’s GDDR6 inside Nvidia’s GeForce RTX 20 series
In a recent blog, Micron stated that it has become Nvidia’s launch partner for Nvidia’s upcoming GeForce RTX 20-Series GPUs. The first two GPUs, GTX 2080 and 2080 Ti, are scheduled for release on September 20. Micron will be the exclusive supplier of GDDR6 memory for these launch GPUs.
Micron is not the only memory supplier for Nvidia
SK Hynix and Samsung (SSNLF) will also supply their memory solutions in the coming months. Samsung is already supplying its GDDR6 solutions for Nvidia’s Quadro RTX workstation GPUs due to launch in Q4 2018. SK Hynix has a supply deal with Nvidia, but it is not known whether it would supply GDDR6 memory or HBM2 (high bandwidth memory).
Next, we’ll see what Nvidia’s supply deal means to Micron investors.