Samsung: Chinese market may experience DRAM/NAND chip shortage next year

By Kate Yuan

(JW Insights) Oct 9 -- DRAM and NAND chips are expected to suffer shortage in certain markets, particularly in China, as the smartphone market gradually recovers, according to a recent survey conducted by Samsung Electronics.

The survey was about the semiconductor demand among Samsung’s key global customers. The results showed that inventory adjustments for customers across various sectors are nearing completion, and the semiconductor industry is expected to experience a full rebound starting in 2024. Shortages in the supply of DRAM and NAND Flash are expected in certain regions from 2024 onwards.

Based on the survey results, a special task force at Samsung will decide whether to continue reducing production and will discuss the scale of any further production cuts.

A senior executive at Samsung mentioned that an increasing number of semiconductor companies have completed their inventory adjustment, particularly after successfully negotiating prices with their largest customer, Apple. It is expected that losses in the NAND business will be significantly reduced.

Regarding server DRAM business, the semiconductor inventory adjustment for major North American customers has also entered its final stage. Data center operators are expanding their infrastructure investments to meet the demands of artificial intelligence.

Industry analysts state that considering the gradual stabilization of inventory, the price increase requests made by Samsung due to the reduction in storage production have started to be accepted. It is expected that from the fourth quarter onwards, improvements in the supply-demand balance and a trend of rising prices will become evident in the storage market.