Storage, which has been plummeting, finally saw a price rebound at the end of 2023. It is said that Samsung, Micron and others are planning to increase DRAM prices by 15%-20% in the first quarter of 2024. TrendForce predicts that the overall DRAM contract price in the global market will increase by 13% to 18% in the first quarter of 2024, continuing the upward trend in the fourth quarter of 2023. In terms of NAND Flash, contract prices are expected to increase by 15%-20% in the first quarter of 2024.
On the supply side, the industry pointed out that whether it is DRAM or NAND, there will be no shortage of upstream supply in Q4 2023. “The premise is that the price proposed by the original manufacturer can be accepted. As long as the price is right, the original manufacturer has the goods to sell.”
Samsung: Profit fell 84.92% year-on-year
The latest preliminary verification data released by Samsung Electronics shows that the company’s operating profit in 2023 will be 6.54 trillion won, a year-on-year decrease of 84.92%. This is also the first time in 15 years that Samsung Electronics’ annual operating profit has once again fallen below 10 trillion won, mainly due to Affected by the poor performance of the semiconductor unit. For the whole of 2023, Samsung Electronics’ sales were 258.16 trillion won, a year-on-year decrease of 14.58%.
Samsung Electronics’ revenue in the fourth quarter of 2023 was 67 trillion won, lower than analysts’ expectations of 70.31 trillion won. Operating profit for the quarter fell 35% year-on-year to 2.8 trillion won. This was also the company’s sixth consecutive quarter of year-on-year operating profit decline, reflecting continued weakness in global demand for consumer electronics.
Samsung’s CIS and memory chips both reported price increases at the end of 2023: CIS prices will increase by 25%, and DRAM prices will increase by 15%-20%.
Micron: Revenue increased 15.6% year-on-year
Micron’s report for the first fiscal quarter of fiscal year 2024 (ending November 30) showed that revenue was US$4.726 billion, a year-on-year increase of 15.6% and a month-on-month increase of 17.9%; in accordance with US Generally Accepted Accounting Principles (GAAP), the net loss was US$1.23 billion. Non-GAAP net loss was $1.05 billion and operating cash flow was $1.4 billion, compared with $249 million in the previous quarter.
At the end of 2023, Micron and Jinhua, Fujian Province reached a global settlement agreement. The two companies will each withdraw their lawsuits against each other globally and end all litigation between the two parties.
SK Hynix: AI will push the company’s market value to exceed 200 trillion won
SK Hynix CEO Guo Luzheng recently said that driven by artificial intelligence chips, the company’s market value is expected to double in three years, reaching 200 trillion won.
Nanya: Revenue decreased by 47.51% year-on-year
DRAM chip maker Nanya announced its self-settled consolidated financial report for the fourth quarter of 2023 as of December 31. The company’s operating income in the fourth quarter of last year was NT$8.704 billion, a quarterly increase of 12.5% and an annual increase of 9.4%. The cumulative operating income in 2023 is NT$29.892 billion (approximately RMB 6.830 billion), an annual decrease of 47.51%.
Li Peiying, chief executive of Nanya Technology, said that the DRAM market is improving quarter by quarter due to the growth in AI demand; prices were also confirmed to rebound last quarter, and there is a chance that the DRAM market will continue to show a gradual upward trend in 2024. Looking forward to this year’s operations, it is expected that operations will improve quarter by quarter, and Nanya will strive to turn losses into profits in a single quarter in the second half of this year.
