Samsung anticipates good 4Q for memory sales
digitimes.com
Jack Lu, DigiTimes.com, Taipei [Monday 18 October 2004]
Samsung Electronics, the world’s largest DRAM and NAND flash supplier, forecast demand for its DRAM and NAND flash products would grow in the fourth quarter since demand for PCs is expected to increase, while prices for high-density flash cards are forecast to drop.
In an October 15 webcast of its third-quarter results, Samsung estimated worldwide PC shipments for the fourth quarter would increase by 14.1% on seasonality and corporate PC replacement.
Samsung said PC shipments grew 10.8% in the third quarter after declining 4.6% in the second quarter and 8.7% in the first quarter.
IDC expects PC shipments will grow 14.2% this year to 176.5 million units, driven mainly by corporate PC replacements, according to a September 27 PC World report.
Samsung claims that price cuts for high-density NAND flash cards will stimulate demand in the fourth quarter. NAND flash cards with a capacity of 512MB are expected to sell at US$40 per card in the fourth quarter, compared to US$70 in the third quarter and US$120 in the second quarter, Samsung said.
With the anticpated price cut, Samsung expects its 512MB and 1GB cards will account for 33% of its fourth-quarter card sales, up from 21% in the third quarter.
Samsung’s comment is in line with that given by SanDisk. In an October 13 webcast, SanDisk said it plans to cut prices for 512MB and 1GB cards by 30% in the fourth quarter, to promote card sales during the holiday season, and it expects the move will reduce oversupply of flash chips in the fourth quarter.
Third quarter
Samsung’s semiconductor sales – which consist mainly of memory chips and system LSIs – increased 4% sequentially and 40% on-year in the third quarter. In contrast, sales by its TFT-LCD Division dropped, as also did sales of mobile handsets and digital-media products (including PC systems). Consumer appliances, such as microwave ovens, all dropped sequentially.
The average selling price (ASP) of DRAM dropped 10% sequentially and was below US$6 per 256Mbit-equivalent unit, while NAND flash dropped 41% to mid-US$5 per 512Mbit equivalent unit.
The South Korea-based chipmaker had more than doubled wafer starts at its 12-inch Fab 13, to 13,000 12-inch wafers per month in September.
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