According to Chosun Biz, the DRAM shortage continues to worsen from quarter to quarter. This is already evident in the dynamics of contract prices, which are showing a sharp increase — in some cases by more than 100%. Despite the fact that memory manufacturers are currently benefiting from unprecedented demand, they are in no hurry to aggressively increase production.
In particular, Samsung believes that the memory shortage may persist until 2028. In this regard, the company seeks to avoid excessive investment in expanding production capacity and adjusts its plans taking into account demand forecasts.
Suppliers are also afraid of a repeat of the cyclical downturn in the DRAM market. After the pandemic, demand for memory remained weak for several quarters: the PC market showed low activity, and corporate purchases grew slowly. As a result, there was a surplus of supply, which Korean manufacturers found difficult to cope with.
At the moment, companies do not plan to revise current capacity expansion projects. Customers are actively demanding more high-speed HBM and DRAM memory, and it is difficult to allocate additional volumes without launching new production lines. However, manufacturers understand that if infrastructure demand slows down, they may need to adjust production levels.
SK hynix has previously stated that the company will adhere to a cautious approach to increasing production capacity.