- Samsung Electronics, SK Hynix, and Micron are set to raise their prices by more than 10 per cent in the first quarter of the year
- The aggressive reduction in D-RAM production in the previous year has resulted in a supply-demand imbalance
Samsung Electronics and SK Hynix have planned significant price increases of over 40 per cent for widely used D-RAM products in an effort to improve their financial performance.
This price hike aims to stabilise the pricing of general-purpose D-RAM, which constitutes a substantial portion of their revenue, and accelerate their financial recovery.
Market research firms and Mirae Asset Securities released a report saying that the top three global D-RAM producers, including Samsung Electronics, SK Hynix, and Micron, are set to raise their prices by more than 10 per cent in the first quarter of the year.
This comes after they implemented price increases of 15-16 per cent in the last quarter of the previous year. Additionally, they intend to adjust their pricing strategies flexibly based on supply dynamics to achieve their pre-downturn operating margin target of 40 per cent.
The aggressive reduction in D-RAM production by these three companies in the previous year has resulted in a supply-demand imbalance in critical D-RAM application areas, such as the mobile, PC, and server markets, with some already experiencing shortages.
An industry expert in the semiconductor field remarked, “The demand for DDR5 D-RAM began exceeding supply in the latter half of last year, triggered by the release of new central processing units (CPUs) and graphics cards from leading manufacturers.” The expert noted, “This trend is expected to extend to mobile and server markets starting from the first quarter of this year.”
