Samsung plans to raise NAND flash memory prices by 20%

According to the North Korean Daily, Samsung Electronics plans to increase the price of NAND flash memory by 20%. The company has decided to renegotiate with major customers to obtain a fair price and minimize losses in the NAND flash memory business. The supply and demand of this business have recently stabilized.

According to industry insiders, Samsung Electronics will renegotiate prices with major mobile, PC, and server customers in March and April this year, and is expected to drive prices up by 15% to 20%.

A semiconductor industry insider said, "The first quarter price negotiations between major storage semiconductor manufacturers such as Samsung Electronics and SK Hynix and their customers have not yet ended. However, as NAND flash memory prices steadily rise, customers are competing to ensure supply and are concerned that NAND flash memory supply will continue to be reduced this year."
Last year was one of the worst periods experienced by the NAND flash memory market, as inventory levels rose due to weak demand and oversupply. Last year, Samsung Electronics and SK Hynix's NAND flash memory business suffered losses of nearly $8.3 billion and $6 billion respectively. Unlike DRAM, NAND flash memory has a large number of suppliers, including Samsung Electronics, SK Hynix, and Micron, as well as Japan's Armor and Western Digital in the United States, making it difficult to normalize the market even if major companies reduce production.

Starting from the second half of last year, with Samsung Electronics, SK Hynix, and Micron implementing high-intensity production cuts and reducing utilization rates to below 50%, the market gradually regained supply-demand balance. Since the fourth quarter of last year, the price of NAND flash memory, which has been sold at a cost level, has slowly increased.

In fact, according to market research companies, NAND flash memory prices have been rising for five consecutive months. The fixed transaction price of the USB universal NAND flash card (128Gb 16Gx8 MLC) in January was $4.72, an increase of 8.87% compared to the previous month. Last month, it increased by 3.82% to $4.9.

The institution stated, "Even during the off-season, buyers will purchase more NAND flash products to ensure inventory. Suppliers are pushing for price increases to minimize losses, and we expect NAND fixed transaction prices to rise by 15% to 20% in the first quarter of this year."