Samsung's DRAM business has finally started to see positive growth as the market researcher Omdia reports that the firm is heading towards recovery.
Samsung Looks To Focus On The HBM Markets With Its DRAM Division Amid Huge Interest From The AI Industry
Samsung's memory division was in a state of despair for many years, especially after the COVID-19 era, mainly because the segment witnessed a massive decline in consumer demand and high inventory levels, resulting in negative financial results in several consecutive quarters. The firm saw a whopping 95% drop in profitability for FY23, creating a problematic sustainability situation. However, after continuous efforts of the firm toward inventory level corrections and a gradual increase in prices, the Korean giant looks to be heading in the right direction.
Korean media reports that the market researcher Omdia feels optimistic about Samsung's DRAM wafer production levels in 2024, with a YoY increase expected as the market transitions into its upgrade cycles, with consumers looking to replace their existing storage and memory products. It is said that the firm seems towards a 2 million wafer output by Q4 2024, a 41% increase from last year's numbers. Samsung now aims to regain lost profits through increased production levels, as the firm anticipates more demand in the future.
Apart from that, Samsung is looking to "re-shape" its strategy towards the markets, diverting its focus more towards HBM production as the AI industry sees an increased demand. Samsung is expected to upscale existing facilities to cater to the upcoming HBM needs in AI products, such as accelerators, as the firm gains the trust of giants such as NVIDIA and AMD. Samsung has already received orders for HBM3e and is looking to get employed in next-gen AI GPUs. The firm seeks to expand from here as it takes a "careful and proactive" approach with its DRAM division.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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