South Korea’s Samsung Electronics remained the world’s largest memory chip maker, but was the longest to withstand the overproduction crisis that accompanied the end of the pandemic. The company began to reduce production volumes of NAND memory later than other market participants, but now sources report that it is ready to initiate a price increase for its products of this type.
At least a resource Business Korea Citing its own industry sources, Samsung Electronics reports that Samsung Electronics will increase contract prices for NAND memory by more than 10% in the current quarter, and the new prices will take effect later this month for customers who have signed new contracts. In this area, manufacturers’ pricing policies also take into account the potential benefits of future deliveries under the contract and therefore must be somewhat proactive in order not to miss out on benefits in the event of a subsequent price increase in the market as a whole.
Let us recall that from January to April, Samsung took several steps to reduce the production volume of memory chips. According to some estimates, the Korean giant has carried out similar actions in the current half of the year. In the current half-year, production volumes of Samsung brand memory fell by 30% in the direction of DRAM memory and by 40% in the direction of NAND. According to TrendForce representatives, these activities have borne fruit, and in late August and September there was an increase in the price of silicon wafers with NAND memory chips in the contract market. Apparently, Samsung will try to speed up the process by not only reducing memory production volumes, but also increasing sales prices.