2023 was a bad year for Samsung, as the demand for chips fell along with their prices. The company's cash cow reported a loss for the first time in its history. As a result, Samsung Electronics' profit was the lowest in recent years. However, things are expected to improve in the coming months, and Samsung has a plan to reap more profits in 2024.
Samsung will increase the prices of NAND flash memory chips by 20% to turn a profit in Q1 2024
It is being reported that Samsung is planning to increase the prices of its NAND flash memory chips by as much as 20%. Over the past year or so, the company has been selling its NAND flash chips with no profits due to oversupply and lower demand. However, things have been improving, and Samsung will renegotiate prices with its clients in mobile, PC, and server segments in March and April.
As production cuts will likely continue for the next few months, some clients are rushing to secure supplies. Unlike DRAM, where Micron, Samsung, and SK Hynix are the only brands, several NAND flash chip makers exist worldwide. Along with Micron, Samsung, and SK Hynix, Kioxia and Western Digital also sell NAND flash chips. So, it is harder to increase the prices.
Since the second half of 2023, all major NAND flash chip makers have cut their production to half or less. As a result, oversupply isn't an issue, and the prices of NAND flash chips have been increasing steadily. South Korean analysts and securities agencies expect Samsung's memory chip segment to turn a profit in Q1 2024. KB Securities expects Samsung's memory division to achieve a profit of KRW 1.1 trillion ($835 million).
