Samsung & SK Hynix Boost 2024 Semiconductor Plans

On December 18th, it was reported that Samsung and SK Hynix are strategically planning significant investments in semiconductor equipment for the upcoming year. Samsung Electronics aims to inject approximately 270 trillion Korean won, signifying a 25% growth, while SK Hynix plans an investment of about 53 trillion Korean won, reflecting an impressive 100% increase compared to the current year. Concurrently, both companies have revised their shipment targets for the next year, with Samsung proposing a substantial expansion of approximately 24% in DRAM and NAND production, and SK Hynix aiming to elevate DRAM production to levels observed by the end of the previous year.

These heightened investments and production targets are motivated by a strategic initiative to position themselves favorably for improving industry conditions. Despite persistent global economic uncertainties, prevailing analyses suggest that the industry may have already reached its nadir this year.

In a forward-looking perspective, Morgan Stanley forecasts a 3.9% increase in global smartphone shipments by 2024 compared to the present year. The projection underscores the pivotal role of Artificial Intelligence (AI) in driving this growth, with AI-driven devices anticipated to generate new demand. Given that AI necessitates substantial memory capacity, this trend is expected to amplify the demand for high-value products. The proactive measures taken by Samsung and SK Hynix align with this anticipated surge in demand for electronic components, particularly those supporting AI applications, underscoring their commitment to technological advancement and market leadership.