Samsung Electronics, SK Hynix performance expected to rise, DRAM price exceeds gold

[ Gearbest Technology News]On April 14, according to foreign media reports, the performance expectations of Samsung Electronics and SK Hynix have been significantly raised by many institutions recently. Market analysis shows that the two South Korean semiconductor giants are expected to rank second and fourth respectively in operating profits among global technology companies this year.

According to Gearbest, the performance previously announced by Samsung Electronics far exceeded market expectations by about 20 trillion won, which is considered to be the main reason for this impact. KB Securities predicts that SK Hynix’s operating profit will reach 40 trillion won in the first quarter, and will continue to rise to 60 trillion won in the second quarter, 70 trillion won in the third quarter, and 80 trillion won in the fourth quarter in subsequent quarters. The full-year profit will be approximately 251 trillion won, a 42% increase from the original expectation. Regarding SK Hynix's first-quarter performance, most institutions predict that it will be around 40 trillion won.

The main factor driving their substantial performance growth is the surge in DRAM prices. Over the past year, the average fixed transaction price of DRAM general-purpose products has skyrocketed from $1.35 per unit to about $13. The latest DRAM product for servers, DDR5 16Gb 4800/5600, has a single-chip price of US$37. Based on the calculation that usually 5 to 6 chips weigh about 1 gram, its price has exceeded the market price of gold per gram.

The market is paying attention to two major changes in the memory semiconductor industry: demand itself remains strong, and the industry is transforming into a “customized industry” like TSMC's foundry business. Both Samsung and SK Hynix are gradually converting quarterly supply contracts into long-term agreements of more than three years.

magicCubeFunc.write_ad(“dingcai_top_0”);