An Introduction to MRAM
MRAM (Magnetoresistive Random Access Memory) combines the best of both worlds in memory—the permanent storage capabilities of NAND and the high speed read and write capabilities of DRAM. Its permanent storage capabilities are even better than NAND, as NAND flash physically degrades every time you erase and write new data to it. So, SSDs have a limited lifespan. On the other hand, MRAM has no physical wear and tear which results in a near-infinite endurance. MRAM also has been called ‘universal memory’, as it theoretically could tackle every use case.
However, the MRAM market remains small today, with as key reason that the cost per bit remains high. Nevertheless, the MRAM market should see attractive growth rates in the coming decade(s) as it plays a crucial role in edge intelligence such as satellites, autonomous vehicles, industrial robotics etc. FMI forecasts the MRAM market to grow at an 18% CAGR over the next 10 years:
“The global MRAM market is expected to grow from an estimated USD 912 million in 2025 to USD 4,773 million by 2035, reflecting a robust CAGR of 18.0% over the forecast period. Growth is primarily driven by the increasing demand for high-performance memory solutions in automotive, aerospace, industrial, and consumer electronics applications.
MRAM offers distinct advantages over conventional memory technologies, including non-volatility, low power consumption, high endurance, and faster read/write speeds, making it an attractive option for next-generation computing systems and IoT devices. Adoption is particularly strong in embedded applications where energy efficiency and reliability are critical, such as in automotive ECUs and industrial controllers.”
Aerospace (satellites) should become a key end-market as MRAM is radiation immune. Traditional memory, like SRAM and DRAM, stores data using electrical charges. In the harsh environment of space, cosmic rays and high-energy particles can alter charges in traditional memory causing bit-flips, i.e. accidentally changing a 1 to a 0. Because MRAM stores data magnetically rather than electrically, it doesn’t have this problem. So, you can use MRAM on satellites without the bulky shielding required for standard memory. Additionally, LEO satellites have a short lifespan of around 5 years or less, making this a business with regularly recurring revenues as satellites have to get replaced.
Everspin (ticker MRAM, enterprise value $159 million) is a leading company in the MRAM space. The CEO guided for their revenues to nearly double in the coming years:
“Before I close, I would like to discuss our long-term strategy, which entails reaching $100 million in annual revenue over the next 3 to 5 years. We believe this growth will be driven by the ramp of new products, most notably our new XY parts in our PERSYST product portfolio, such as the 64-megabit part I described earlier and continued solid growth in our Toggle MRAM and licensing business. Our new PERSYST X5 parts are getting solid traction. They are offered in densities from 4 megabit to 256-megabit and include the power-optimized SC families and the high reliability or HR families with quad and optical SPI interfaces.”
As we know, memory is currently supply constrained with manufacturing capacity heavily being reoriented towards HBM and DRAM. Can this have downstream effects where excess demand starts flowing over into the MRAM market next? Is Everspin next to benefit from supply shortages in the overall memory industry? We’ll take a deep look at all relevant topics next.