According to Korean media, Business Korea reports, Samsung internally that the current NAND Flash supply price is too low, the company plans to start in the fourth quarter of this year, raise the contract price of NAND Flash products, the rate of increase of more than 10%, is expected to be as soon as this month, the new contract will be the use of the new price.
▲ Source: Business Korea
Since the beginning of this year, Samsung has been pursuing a production reduction strategy, Samsung’s wafer production fell by 40%, the initial production reduction initiatives are mainly focused on the field of DRAM, then Samsung began to embark on a substantial reduction in the second half of the NAND Flash business production, now trying to promote the normalization of the price of NAND.
Now DRAM prices have rebounded, while NAND products still have room to break through. Samsung’s goal is to expand the scale of production cuts, reduce supply, and then raise product prices to seek a reversal, and it expects to realize the break-even point for NAND in the second quarter of next year.
According to Han Dong-hee, a researcher at SK Securities, Samsung’s second wave of production cuts and profit-prioritization policy are expected to drive a rebound in memory chip prices.
Currently, buyers and sellers in the industry are negotiating contract prices, and foreign media believe that DRAM and NAND Flash contract prices will rise 10%-15% in the fourth quarter, and Samsung is even planning to raise 20%, but we still have to see the specific transaction price.
