Memory chip prices are about to rise again

According to Tech News Space , Samsung's operating profit report for the third quarter saw a more than three-fold increase compared to the previous quarter. SK hynix's DRAM memory chip business also returned to profit after posting losses in the first two quarters of this year.

Manufacturers cut memory chip production to increase selling prices

The recovery in memory chip prices is largely due to a decline in new product supply and the depletion of accumulated inventories in the market, according to research firm Dalton Investments. When memory chip prices reach a minimum, PC and mobile device makers are ready to replenish their inventories or offer customers products with increased storage capacity.

In its third-quarter 2023 report, Samsung officials confirmed they are receiving requests from many customers to purchase new memory batches as more companies believe the industry has bottomed out, in line with market expectations.

The report also showed that average DRAM chip prices increased by 4-6% for Samsung and 10% for SK hynix. At the same time, memory inventories continued to be higher than normal, most clearly reflected in the NAND memory segment. Analysts said that memory makers will not rush to increase memory production volumes next year to limit supply and encourage higher memory prices.

Analysts at TrendForce predict manufacturers will reduce production volumes of DRAM and NAND next year, while demand for these types of memory will increase by 13% and 16%, respectively.

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