In the realm of electronic components, the memory industry is set to make a splash with Micron leading the way by announcing its financial report on June 28. Market analysts anticipate that the three major memory manufacturers—Micron, SK Hynix, and Samsung Electronics—will face significant pressure in their second-quarter financial reports. However, the expected losses are projected to be slightly reduced, as spot market prices have stabilized and the original manufacturers have held firm on their prices. As a result, it is predicted that contract prices for the third quarter may remain stable or experience a slight decline.
The market is eagerly awaiting Samsung's preliminary profit announcement in early July, with a particular focus on the gross profit margin, which has drawn considerable attention. Research institutions estimate that all three major memory manufacturers—Micron, SK Hynix, and Samsung—may continue to experience losses in the second quarter, but the magnitude of these losses is expected to decrease.
Industry experts anticipate that Micron's release of the memory industry's outlook for the second half of the year on June 28 will positively impact the stock market performance of the electronic components industry.
Financial analysts project that Samsung's semiconductor division's losses in the second quarter will decrease from 4.58 trillion Korean won to approximately 3.5 trillion Korean won, while SK Hynix's losses are predicted to decrease from 3.4 trillion Korean won to 2.86 trillion Korean won. Similarly, Micron's losses from March to May are expected to decrease from $2.191 billion to $1.731 billion, primarily attributed to a reduction in inventory depreciation losses. Many industry analysts believe that this economic downturn has reached its lowest point.
Looking ahead to the third quarter, industry insiders suggest that memory contract prices may experience a slight decline, although the extent of the decrease is limited due to stabilized spot prices and the commitment of original manufacturers to maintaining their prices. It is anticipated that contract prices for the third quarter will either remain stable or see a slight decline, indicating a gradual move towards stability.
As inventory depreciation losses continue to diminish throughout the third quarter, market observers also expect further convergence of losses for the three major memory manufacturers. Additionally, the positive effects of Samsung's production reduction are expected to become evident in the second half of 2023, leading to an anticipated rebound in DRAM prices in the fourth quarter of the year and a subsequent rebound in NAND prices, likely around a quarter later.