Samsung expects demand for memory chips to rise again next year

Samsung thinks that demand for memory chips will recover next year. The company said this when discussing its quarterly figures. Samsung expects that the demand for PCs and smartphones will also increase next year.

According to Samsung goes demand for memory will increase next year due to growing demand for AI, in addition to normalizing customer inventories. The company will focus, among other things, on HBM3 and HBM3E chips, which are used in data center chips for training AI models, such as the Nvidia A100 and H100.

Samsung does say that the server market next year could be influenced by various factors, such as geopolitical tensions and “trends in IT spending related to macroeconomic conditions and generative AI.” Regarding the latter, Samsung expects that the uncertainties in the economy will continue into 2024.

The memory market has recently suffered a sharp decline, with low demand leading to excess inventories at companies. These companies therefore purchased fewer new products from chip manufacturers. Memory manufacturers, including Samsung, therefore decided to produce fewer memory chips to increase prices. The first effects of this can now be seen. Samsung expects a recovery in the memory market next year.

The South Korean tech giant also expects demand for PCs and smartphones to increase again next year. Those products will benefit from replacement cycles, according to the company. From next year, consumers may replace the products they bought at the start of the corona pandemic, Samsung predicts.

Last quarter, Samsung had a turnover of 46.9 billion euros and a profit of approximately 1.7 billion euros. According to Samsung, this is mainly due to the release of new smartphones and higher sales of high-end displays. The loss of Samsung’s Device Solutions division, which is responsible for chip production, among other things, also decreased.