April 23, 2024

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[THE INVESTOR] Korean chipmakers Samsung Electronics and SK hynix will get a big boost in their fourth-quarter earnings from the improving prices of DRAM chips for PCs and smartphones, market analysts predicted on Dec. 9.

According to data compiled by market research firm DRAMeXchange, the average selling price of a 4-giagbit DDR3 chip increased to US$2.60 in November, up 6 percent from a month ago. 

In October alone, the DRAM chip saw a 25.3 percent surge in prices -- the highest growth in three years and seven months.

“DRAM prices are continuing to move up since the second quarter this year due to rising demand for smartphones in China,” said Lee Jeong, an analyst at Yujin Investment and Securities.

Samsung’s chip business division is estimated to post an operating profit of 4.6 trillion won in the October-December period, up almost 35 percent from 3.4 trillion won in the third quarter, according to NH Investment and Securities.

SK hynix’s fourth-quarter operating profit is also expected to see a whopping 90 percent quarterly surge to 1.4 trillion won.

Some analysts forecast DRAM prices could further increase almost 10 percent in the first quarter next year.

By Kim Young-won (wone0102@heraldcorp.com)