"South Korea Memory Chip Export Recovery... Samsung and Hynix Q1 Earnings Expectations"

Expectations are rising for the first-quarter earnings of Samsung Electronics and SK Hynix based on the recovery trend in domestic memory semiconductor exports.

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According to Bloomberg Intelligence (BI), a research institution under Bloomberg, senior analyst Masahiro Wakasugi recently analyzed this in reports such as "Recovery of Korean Memory Chip Exports" and "Implications of Micron's Memory Segment Performance."

The report cited data from market research firm Gartner showing that in the third quarter of last year, the DRAM market share (based on bit supply) was Samsung Electronics (39%), SK Hynix (34%), and Micron (23%) in that order, and forecasted that with the recovery in DRAM exports, Korean companies' first-quarter sales could also strongly rebound.

Last month, Korea's NAND flash (NAND) exports also rebounded to a record level, totaling $890 million (approximately 1.2 trillion KRW), up 82% year-on-year and 3% quarter-on-quarter. In terms of NAND market share (based on price) in 2022, Korean companies such as Samsung Electronics (35%) and SK Hynix (18%) accounted for the majority.

Market research firm TrendForce expects the average selling price (ASP) of NAND to rise 23?28% in the first quarter compared to the previous quarter, followed by a 13?18% increase in the second quarter, suggesting that Korean companies' NAND segment sales will continue to perform well.

There is also analysis that Micron's earnings outlook is a factor that raises expectations for domestic semiconductor companies' performance.

Micron recently announced that its revenue for the second quarter of fiscal year 2024 (December to February) increased 58% year-on-year to $5.8 billion (approximately 7.8 trillion KRW).

Micron's DRAM sales in the second quarter rose 53% year-on-year and 21% quarter-on-quarter, and this trend is expected to be reflected in the first-quarter results of Samsung Electronics and Hynix.

Micron expects its third-quarter (March to May) revenue (median) to reach $6.6 billion (approximately 8.9 trillion KRW), up 76% year-on-year and 13% quarter-on-quarter.

Analyst Wakasugi said, "This is about 10% higher than market expectations," and forecasted, "It could be a positive factor for Korean companies' second-quarter earnings."

This content was produced with the assistance of AI translation services.