Samsung DRAM business revives: Omdia predicts production capacity will return to 2023 levels in the second half of 2024

In 2023, Samsung's DRAM business encountered huge challenges. The losses in the first three quarters reached more than 4.58 trillion, 4.36 trillion and 3 trillion won respectively, while the losses in the fourth quarter narrowed further. Full-year profit margins fell by 95%.

According to Omdia estimates, Samsung's cumulative wafer production in the first half of 2024 will be approximately 1.575 million pieces, equivalent to 75% of the production in the same period last year.

By the third quarter of 2024, production will increase to 1.965 million pieces, an increase of 11% over the same period last year, exceeding the 1.77 million pieces in the third quarter of last year. The output in the fourth quarter is estimated to exceed 2 million pieces, an increase of 41%, compared with 1.425 million pieces in the fourth quarter of 2023.

Currently, Samsung is fully seeking to recover lost profits. To this end, the company will selectively focus on the memory business, including investing more resources in HBM chips to improve profit margins. Therefore, according to a report from SeDaily, although Samsung will increase production, it will mainly focus on specific areas.