Samsung, SK Hynix May Expand General Memory Production

The memory semiconductor market is experiencing a strong recovery, driven by the resurgence in demand for IT devices such as smartphones and PCs. This rebound has led to price increases for key components like DRAM and NAND flash memory, primarily fueled by the ongoing global artificial intelligence (AI) boom and improving economic conditions, which have reignited interest in high-performance semiconductors.

According to reports, while demand for high-performance semiconductors used in AI servers, such as High Bandwidth Memory (HBM), remained strong last year, the broader market for general-purpose memory faced oversupply due to economic downturns and slower consumer spending. This resulted in a nearly 30% decline in NAND flash prices between October and November. However, early 2024 has shown signs of recovery, with the fixed transaction price of 128Gb Multi-Level Cell (MLC) NAND flash rising to $2.18 in January and further increasing to $2.29 in February.

Market research firm DRAMeXchange reported on March 13 that the average spot price of general-purpose DDR4 8Gb DRAM reached $1.466, marking five consecutive days of growth since March 7. Meanwhile, DDR5 16Gb spot prices rose over 6% month-over-month on March 12, reaching $5.068. Analysts expect this upward trend to continue.

Industry leaders are optimistic about the market's recovery. SanDisk has announced plans to raise prices by more than 10% starting April 1, anticipating that demand will soon outpace supply. Micron Technology has also expressed confidence in market conditions, noting that inventory levels for PCs and smartphones are improving and are expected to reach healthy levels by spring. Similarly, SK Hynix President Kwak Noh-Jung stated that ongoing efforts to stabilize NAND supply should lead to market improvements by the end of the year.

Further supporting this recovery, Gartner projects that the AI PC market will expand by 165.5% in 2024, growing from 43.02 million units last year to 114.22 million units. This surge is expected to drive demand for memory semiconductors, prompting major manufacturers such as Samsung Electronics and SK Hynix to consider expanding general-purpose memory production in response to sustained price increases.