According to supply chain sources, well-known semiconductor company SK Hynix will raise prices for its LPDDR5, LPDDR4, NAND, and DDR5 products by an estimated 15%-20%. It’s understood that Hynix’s DRAM product prices have been gradually increasing since the fourth quarter of last year, with cumulative price hikes reaching 60%-100%, though the rate of increase may slow in the second half of the year.
Notably, due to rising memory prices, Samsung Electronics’ operating profit in the first quarter of 2024 reached KRW 6.606 trillion. According to financial reports, Samsung’s memory business revenue for this quarter was KRW 17.49 trillion, up 11% sequentially and 96% year-on-year. The memory business accounted for 75.58% of the company’s total semiconductor business revenue.
Samsung Electronics stated that overall demand in the memory market was very strong in the first quarter of this year, especially for DDR5 and NAND Flash, driven largely by generative artificial intelligence. This is one of the key factors contributing to industry-wide price increases.
However, industry insiders also pointed out that demand for DRAM and NAND Flash is steadily increasing in the overall PC and mobile device markets. This growth is primarily driven by active promotion by Chinese mobile device OEM customers, and market demand remains strong.
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