Memory Prices Rebound Due to Reduced Production, Increasing Demand

Memory makers are witnessing increasing prices as production reductions lead to price rises in both DRAM and NAND segments. Companies like Adata, Phison, and Winbond are experiencing improved revenues in September and Q3, with an overall positive future outlook, reports

The memory industry is seeing positive growth, especially after production cuts by leading makers such as Micron, Samsung, and SK Hynix. Phison, a leading developer of SSD controllers and a supplier of actual drives, has reported an increase in September revenues, achieving NT$50.04 billion ($1.557 billion). This is a 25.38% monthly increase and a 4.05% yearly increment, marking a 14-month high. The company’s Q3 earnings also showed an encouraging 24% quarter-over-quarter growth, despite a year-over-year drop of 15%. Cumulatively, Phison’s revenue for the first three quarters was down by 32%, standing at NT$324.74 billion ($10.1 billion).

Adata, leveraging both the production benefits and the recovery of DRAM and NAND prices, presented remarkable figures. The company’s September revenue landed at NT$14.82 billion ($461.2 million), which is a monthly increase of 16.47% and an impressive annual growth of 113.10%. Adata’s Q3 revenue amounted to NT$36.48 billion ($1.135 billion), with a 35.5% decline from the previous quarter but a significant 116.33% yearly spike. Their earnings for the first three quarters were great, too: at NT$108.72 billion ($3.383 billion), it indicated a 119.22% yearly increase, setting unprecedented highs.

Optimism surrounds the fourth quarter as well, especially for Adata. The company aims to capitalize on upcoming major shopping events like Singles’ Day and Christmas. With plans to meld online and offline sales strategies, they are poised for an even more profitable season, according to the report. Furthermore, Adata’s leader, Chen Libai, has highlighted signs of industry revival and anticipates DRAM and NAND Flash contract prices to ascend by 10%-15%. He believes that both spot and contract rates for these memory components will sustain this upward trajectory.

Winbond, a producer of memory focused primarily on specialty memory, also faces rejuvenated customer demand. Their financials for September showcased a revenue of NT$ 67.66 billion ($2.1 billion), reflecting a 5.32% growth from the previous month and a 7.96% decline year-over-year. The company’s quarterly earnings for Q3 amounted to NT$ 195.06 billion ($6.07 billion), a rise of 3.69% from the previous quarter and a drop of 11.92% compared to the previous year. The total revenue accumulated over the first three quarters was NT$ 558.32 billion ($17.375 billion), marking a 25.86% annual decrease.

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