Samsung Electronics and SK Hynix: Tight Supply Will Continue, but Memory Price Hikes Will Slow

The June-quarter results of memory suppliers Samsung Electronics and SK Hynix exceeded our expectations and based on strong memory prices and the prospect that tight memory supply will last longer than we had previously assumed, we are raising our forecasts for 2024 and 2025. Although memory suppliers are expected to significantly increase capital spending next year, most of this will be allocated to high-bandwidth memory expansion and capacity expansion for general memory will be limited. As a result, we expect the moderate memory price increases to continue at least until the middle of next year.