As the storage market gradually recovers, Samsung and SK hynix will expand their equipment investment next year, not only will Samsung increase by 25%, but SK hynix's investment will double this year, and simultaneously increase production capacity, which has attracted attention.
The market is worried, and the market is finally due to the production reduction of large factories and began to alleviate the long-term oversupply pressure, at a time, the two major factories will invest a lot of money, so that other customers are at a loss
According to the Omdia report, in terms of DRAM sales, in the first quarter of 2023, Samsung, which ranked first, had a market share of 428%, and SK hynix's market share is 247%, ranking third;In the same period, the NAND flash part, Samsung's market share was 343%, ranking first in the world in NAND Flash, and SK hynix (including its subsidiary Solidigm) has a market share of 151%, 4th place.
The industry believes that the main reason for the two major manufacturers to increase equipment investment and production is to prepare for the improvement of the industry, but they are also worried that it may disrupt the storage market pattern that is about to balance
Although Samsung and SK hynix plan to increase semiconductor equipment investment and production capacity in 2024, it will take time for equipment to be stationed and turned on, and the increase in capacity utilization is not a pull, coupled with the general consensus in the industry, there are many AI-related applications that need large-capacity memory assistance in the future, for example, global smartphone shipments next year are expected to increase by 3% compared with this year9%, which will help expand the market demand for ** value storage.
According to Fortune's estimates, the global edge computing market is expected to grow from 159 to 2023$600 million, growing to 1,395 by 2030800 million US dollars, with an average annual growth rate of 363%。
With the improvement of chip specifications, related equipment must be updated, and the requirements for high-speed data transmission in AI applications, including high-speed transmission chips, transmission interface connectors, memory and heat dissipation modules, etc., will be upgraded, which means the arrival of new business opportunities.
DRAM contract prices are expected to maintain their upward trend from Q1 to Q4 2024 as end-demand is likely to recover from Q2 2024 onwards and leading manufacturers will maintain disciplined production increases.