Combined sales of memory products (mainly DRAM and NAND flash chips) by Samsung Electronics and SK Hynix are likely to inch up 0.5% sequentially in the first quarter of 2021, Digitimes Research estimates.
Replenishing inventory demand from the server sector and growing 5G phone shipments worldwide will help push memory sales at the two Korean companies, Digitimes Research says.
However, ASPs of DRAM and NAND flash chips are to go down slightly in the first quarter, with prospects to see the operating margin of the memory business at Samsung edge down 1pp and that at SK Hynix's inch up 1pp in the quarter.
While expecting to be more conservative about facility expansions, the two firms are likely to make meaningful acquisitions to ramp up their business scales in 2021.
Although Samsung has yet to disclose the projected investments for 2021, it said it has mapped out M&A (merger-and-acquisition) plan for 2021-2023. Meanwhile, SK Hynix plans to increase its capex for 2021 compared to a year earlier.
