Samsung, SK Hynix Delay Chip Production Boost
Business Korea's recent report highlights that despite industry optimism signaling a potential resurgence in the semiconductor sector, major players such as Samsung and SK Hynix have yet to resume full-scale production increases. Up to May 20th, both companies maintain a cautious approach towards scaling up standard DRAM and NAND chip output.
Market projections suggest a possible uptick in production from these companies as semiconductor conditions improve throughout the year. However, recent statements from their first-quarter earnings calls indicate anticipated constraints on DRAM production growth.
Ongoing uncertainties prevail in the standard DRAM and NAND markets, exacerbated by factors like the upcoming U.S. elections, potential shifts in economic policies and trade regulations, and persistent geopolitical tensions in the Middle East.
April witnessed a notable spike in the average contract price of standard 8Gb DDR4 DRAM used in PCs, surging approximately 17% compared to March. This surge, though significant, is perceived as a temporary market response rather than a sustained demand recovery. Conversely, prices for standard NAND have remained stable since March, showing no significant fluctuations.
TrendForce, a prominent market research firm, observes a transient surge in demand following the Taiwan earthquake. However, with PC manufacturers maintaining high inventory levels, overall procurement of PC DRAM is anticipated to experience a notable decline in the second quarter.
Samsung Electronics and SK Hynix are strategically redirecting their focus towards expanding HBM production. This shift, driven by the heightened technical demands of HBM, inadvertently impacts the production capacity of standard memory. Consequently, within the confines of limited production capacity, the emphasis on HBM production translates to a substantial reduction in standard memory output.
Anticipating the launch of multiple new smartphone models in the latter part of the year, including the highly anticipated Galaxy foldable phones and iPhone 16 series, manufacturers may contemplate augmenting production of standard memory products to meet potential demand surges.
