Korean Memory Firms Surge: Samsung Invests Up 25%

In 2024, both Samsung and SK Hynix have announced strategic expansions in semiconductor investments. Samsung is set to invest around 270 trillion Korean won, marking a 25% increase from its 2023 budget, while SK Hynix plans a 100% investment growth at approximately 53 trillion Korean won.

This commitment to expansion aligns with heightened production goals for 2024. Samsung Electronics targets a 24% increase in DRAM and NAND production, with specific focus on monthly input quantities for various DRAM wafers. SK Hynix, on the other hand, aims to elevate DRAM production to pre-reduction levels, emphasizing the scaling of advanced DRAM like HBM.

Both companies, having initiated production cuts in late 2022, anticipate their 2024 DRAM production to meet or exceed pre-reduction levels. However, due to a sluggish recovery in the NAND market, production is expected to remain below pre-reduction levels.

Morgan Stanley forecasts a 3.9% increase in global smartphone shipments in 2024, attributing this growth to the rising demand for high-capacity memory driven by the integration of AI on devices.

Market data from TrendForce indicates that Samsung holds approximately 38.9% of the DRAM market share, with SK Hynix at around 34.3%. In the NAND sector, Samsung commands about 31.4% market share, while SK Hynix claims around 20.2%. These developments underscore the market positions of these industry leaders and their strategic moves in response to evolving semiconductor demands.