Samsung Electronics has taken a strategic step by announcing a steady increase in 20% quarterly in the prices of the NAND Flash memory until second quarter of 2024, exceeding industry expectations.
Samsung initially increased NAND wafer prices by 10% to 20% in the current quarter, and the company plans to continue this trend with progressive increases during the first and second quarters of next year. The goal is to stabilize NAND wafer prices and potentially influence the direction of the market in the first half of next year.
According to the research of TrendForce October, the increase in NAND wafer prices since August is expected to result in a 5-10% increase in enterprise SSD contract prices in the fourth quarter. Both high-end and low-end products could see simultaneous increases, with a projected increase in 8-13% in the prices of contracts SSD for Client PC in the fourth quarter of 2023.
Additionally, a 13-18% quarterly increase in mobile DRAM is anticipated, and NAND Flash contract prices for eMMC and UFS are expected to increase approximately 10-15% in the same quarter.
TrendForce forecasts a continued upward trend in memory prices in the first quarter of 2024, depending on suppliers' production strategies and consumer demand.
Samsung's pricing strategy not only affects the market but also influences the company's performance. NAND, along with DRAM, makes up about half of Samsung Electronics' memory chip sales. The company seeks to effectively manage market supply and improve profitability through aggressive price increases and production cuts.
Analysts anticipate a significant improvement in Samsung's operations starting in the fourth quarter of this year, as memory production cuts take effect and prices rise.
In Taiwan, NAND-related companies express optimism about the future of the industry. Phison Electronics Corp CEO Khein Seng Pua points to the completion of OEM customer inventory adjustments, which has led to an increase in demand for wafers. ADATA President and CEO Simon Chen expects a prolonged period of rising memory prices, creating a two-year era of prosperity in the memory market.
Industry experts highlight wafer market revitalization NAND, with customers gradually returning. As a global leader in memory chips, Samsung's initiative to increase prices contributes to a favorable price trend in the overall market.
Source: trend force