Samsung DRAM business achieves profitability after 5 quarters

As one of the world’s foremost semiconductor manufacturers, Samsung’s semiconductor division has historically been a veritable gold mine. However, the past year witnessed an unprecedented slump in the global memory chip sector, inflicting severe financial losses on Samsung and entangling it in a continuous battle against inventory surpluses and faltering market demand. The DRAM segment, in particular, plunged into successive quarters of losses, beleaguered by an overabundance of stock, diminished demand, and declining prices. Ultimately, Samsung was compelled to focus on enhancing profitability through production cuts and other measures, though progress has been challenging.

According to reports from relevant media outlets, after a prolonged period of struggle, Samsung’s DRAM and NAND flash memory operations have finally glimpsed the dawn of recovery, with the January financial statements of this year heralding a return to profitability. Should this positive trend persist, Samsung’s DRAM division is poised to celebrate its first quarterly profit in five quarters.

A recent report for the fourth quarter of 2023 by TrendForce on the DRAM and NAND flash markets ranked Samsung as the leading manufacturer in both segments, with the most significant growth margins. Specifically, the DRAM sector saw a quarterly surge exceeding 50%, amounting to $7.95 billion, while the NAND flash segment grew by 44.8%, reaching $4.2 billion.

Nonetheless, industry insiders caution that, despite the current positive market sentiment, it is premature to relax vigilance. The deliberate reduction in production by suppliers has led to a price increase and an improved supply-demand situation. However, market demand continues to be fraught with considerable uncertainty, potentially serving as an unexpected variable, necessitating close monitoring of inventory levels.