Samsung, SK Hynix DRAM Wafer Production Rebounds

In recent findings disclosed by market research authority Omdia, notable South Korean DRAM manufacturers, including Samsung Electronics and SK Hynix, are projected to witness a resurgence in wafer production for DRAM memory during the latter half of 2024. This anticipated uptick signals a return to pre-reduction levels, marking the conclusion of nearly a year-long period characterized by production cuts, with the overarching aim of normalizing operations within the DRAM sector.

The report reveals that Samsung Electronics is poised to initiate an escalation in its monthly wafer production for DRAM to 600,000 wafers commencing this quarter, reflecting a notable 13% upsurge from the preceding quarter. Furthermore, Samsung's trajectory points towards a further amplification of DRAM wafer production to 660,000 wafers per month in the latter half of the year, effectively reinstating operations to pre-reduction benchmarks.

Noteworthy insights indicate an increase in wafer production at Samsung's DRAM facilities situated in Hwaseong and Pyeongtaek, which are currently undergoing a strategic transition towards EUV exposure equipment.

Industry insiders emphasize that, considering the conventional three-month lead time from wafer production to DRAM shipments, Samsung's strategic move to bolster DRAM capacity underscores a robust anticipation of heightened demand for DRAM in the latter half of the year. This resurgence in DRAM capacity at Samsung is forecasted to have a favorable impact on performance metrics, expected to materialize by the conclusion of 2024.

Concurrently, SK Hynix's DRAM wafer production is experiencing a gradual resurgence, with average monthly outputs increasing from 390,000 wafers in the first quarter to 410,000 wafers in the second quarter. Projections indicate a further rebound to 450,000 wafers per month in the latter half of the year, marking a return to pre-reduction levels.

The collective trajectory suggests a sustained three-quarter growth period in DRAM prices, coupled with a decline in memory inventory levels. Projections by South Korean securities firms anticipate the continuity of this semiconductor upturn cycle until at least the end of 2024, fostering an environment conducive to stakeholders within the industry.