"DRAM Hits Yearly High"... Samsung, SK Expect Memory Boom

On September 23, the spot price of DRAM, the flagship product of the memory semiconductor sector, reached its highest level of the year. As a result, expectations are rising within the domestic industry for a "memory boom." There are also forecasts that Korean companies such as Samsung Electronics and SK Hynix, which have continued to ramp up DRAM production, will leave behind the "semiconductor winter" and usher in a new spring.

According to market research firm TrendForce, as of the afternoon of September 22 (local time), the average spot price of DDR4 8Gb (1Gx8) 3200 was recorded at $5.868. This product is a general-purpose DRAM used in various devices and is considered an indicator of DRAM price trends.

The price of $5.868 is the highest recorded so far this year. The price of DDR4 started at $1.35 at the beginning of January but continued to rise, reaching $5.7 last month. This marks the first time in six years and six months since February 2019 that DDR4 prices have surpassed $5. The price then climbed another notch on this day, setting a new annual high.

Although not as explosive as DDR4, DDR5 prices have also been steadily rising. As of the previous day, the price of DDR5 16G (2Gx8) 4800/5600 was $6.927, an increase of 1.21% compared to the same period last month.

Experts attribute the recent rise in DRAM prices primarily to the significant increase in demand for artificial intelligence (AI) servers used in devices such as PCs and smartphones. While the number of applications for DRAM has grown, the available supply in the market has remained tight, creating a "shortage" that has driven prices higher.

Global analysis firms and securities companies expect this trend to continue through the fourth quarter of this year. The American financial investment analysis group Wedbush predicted, "DRAM prices will see double-digit growth in the fourth quarter."

The price trend is also being directly reflected in the market. According to industry sources, Samsung Electronics recently notified major clients of its intention to raise fixed transaction prices for DRAM by up to 30% in the fourth quarter. This follows similar official price hikes by US-based Micron and SanDisk. As more companies join in raising prices, expectations are growing that SK Hynix will also increase its DRAM prices soon.

An industry insider stated, "Both Samsung Electronics and SK Hynix are currently increasing their DRAM production capacity," adding, "If they can successfully respond to the high market demand, they could turn the DRAM price hikes into a positive opportunity." In the case of Samsung Electronics, under the direction of Jeon Younghyun, head of the Device Solutions (DS) division, the company has reportedly ramped up wafer input from 450,000 to 600,000 per month since last month, maximizing its DRAM production capacity.