Reported 8 months ago
Recent memory market conditions show increased product prices and shipping volumes, with continued reduction in production, benefiting South Asia Technology (2408) and Winbond Electronics (2344) as operations improve quarterly. Memory factories are benefitting from major orders for high bandwidth memory and DDR5 from international giants to meet future AI and HPC demands, causing shortages in low-margin DDR4 production, leading to price stabilization and improved profits. Anticipated growth in smartphone and PC demand will boost average DRAM capacity, promising revenue growth. South Asia Technology is expected to gradually reduce production cuts with a focus on DDR5 production, leading to potential profit turnaround. The market foresees increased shipments for South Asia Technology, with DDR4 production expected to rise as DDR3 decreases. With major players like Samsung and SK Hynix adjusting production lines to halt DDR3 supply by the second half of the year, Taiwanese suppliers are likely to see improved DDR3 contract prices over spot prices. Investor optimism is supported by price increases in niche DRAM and NOR markets in the second quarter, coupled with opportunities from upcoming AI, PC, and smartphone releases, positioning Winbond Electronics for an upturn in its memory business and improved market evaluation.
Source: YAHOO