On October 31, 2023, Samsung Electronics one of the prominent manufacturers in the world reported that it will continue to cut production to ease a chip supply glut and gear up for next year, this shows, that 2024 could be the end of a terrible memory chip flop.
As the technology landscape evolves at a rapid pace, the semiconductor industry has been no stranger to both boom and bust cycles. In recent years, memory chip manufacturers, including industry giant Samsung, have faced challenges related to market oversupply and fluctuating demand.
However, as we enter 2024, Samsung, a key player in the memory chip sector, predicts a positive turnaround, marking the end of the memory chip flop. Samsung said it plans to increase HBM output capacity by 2.5 times or more in 2024 versus this year.
Shares in Samsung were down 0.3% at midday following the comments, compared to a 1.9% decline in SK Hynix shares. The benchmark index (.KS11) was down 1.3%. Samsung competes in memory chips for AI with SK Hynix, which took the lead in HBM3 chips by supplying tech major Nvidia (NVDA.O).
Chipmakers are now developing the next generation HBM3E for 2024. However, the Korean tech giant is also following the same and has focused on cutting-edge DRAM chips supporting AI and cutting the production of older chips.
