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03.11.2023 15:55, Alexey Razin
South Korean company Samsung Electronics is the world’s largest memory manufacturer, and it is one of the last to begin reducing production volumes of NAND chips in order to provoke a rise in prices after a protracted decline. This quarter, it decided to directly increase prices by up to 20%, and will continue to take similar measures until the middle of next year.
Image source: Micron Technology
This is reported by TrendForce, it became known this week from the South Korean media. In the current quarter, the company increased contract prices for silicon wafers with NAND chips by 10 to 20%, but immediately decided that it would increase them by 20% both in the first quarter of next year and in the second. Flash memory prices have been increasing since August of this year, as TrendForce notes, and this has already resulted in contract prices for enterprise-class SSDs increasing by 5-10% in the current quarter. These are profitable times for suppliers, as they have the opportunity to insist on their own prices in negotiations with buyers. Contract prices for SSDs in the PC segment in the current quarter should increase by 8-13%, according to TrendForce analysts.
Prices for other types of memory will also increase in the current quarter. For example, mobile DRAM will rise in price on the contract market by 13–18%, and NAND used in memory cards will increase in price by 10–15%. In other market segments, prices for DRAM chips will not grow so noticeably. In the case of Samsung, NAND and DRAM memory for various purposes forms about half of the company’s revenue from the sale of semiconductor products. Samsung is in no hurry to increase memory production volumes in the current conditions, but revenue may return to growth after a price increase this quarter. The oversupply of memory is now felt more in the NAND segment, as representatives of the South Korean giant made clear at a reporting event last month.
Phison representatives are also convinced that the inventory correction in the memory market is coming to an end. ADATA management is confident that memory prices will rise from this quarter until the end of the next half of the year. Over the next two years, the shortage of memory chips on the market will help manufacturers prosper until the next cycle changes. It is believed that the trend set by Samsung to increase prices for NAND memory will be picked up by the rest of the market in the coming months.
2023-11-03 12:55:00
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