[Concall] Samsung Electronics "Memory Market to Recover Next Year... Supply Concentrated on HBM"

Samsung Electronics stated in its conference call following the Q3 earnings announcement on the 31st that regarding the memory market outlook, "We expect demand in 2024 to continue its recent recovery," adding, "Normalization of inventory among customers and the industry, growth in AI-related demand, and trends toward higher capacity in PCs and mobiles will have a positive impact on demand recovery."

They continued, "On the supply side, selective production cuts within the industry are expected to continue in 2024," and added, "Considering the overall reduction in capital expenditures (CAPEX) that has continued since the second half of 2022, improvements in industry bit productivity will inevitably be limited."

They also explained, "Even within the limited CAPEX, the investment concentration on high-bandwidth memory (HBM) will cause supply of other products to fall short of demand."

Regarding memory prices next year, they said, "It is cautious to predict as many variables influence the market," but they expect that "price increases will accelerate along with market recovery. However, the speed of price increases may vary depending on the supply and demand speed of each product."

Samsung Electronics Pyeongtaek Campus viewed from the air. [Aerial filming cooperation = Seoul Metropolitan Police Agency Aviation Unit, Pilots: Lieutenant Shin Seung-ho - Lieutenant Park Ji-hwan, Crew: Lieutenant Park Sang-jin] Photo by Jinhyung Kang aymsdream@

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