[Edaily Reporter JAEMIN SONG ] The global memory semiconductor market is projected to reach nearly 350 trillion won in the second quarter of this year, driven by a sharp rise in memory prices resulting from increased investment in artificial intelligence (AI). With both DRAM and NAND flash prices rising by more than 50%, SamsungElectronics and SK hynix are expected to post record-breaking earnings; however, some observers predict that growth will slow somewhat starting in the second half of next year due to factors such as the expansion of long-term supply agreements (LTAs) and rising cost pressures.

According to the Memory Tracker report released on the 3rd by market research firm Counterpoint Research, the global memory market is projected to reach approximately 350 trillion won in the second quarter of this year—a growth of more than 60% from the previous quarter and 380% from the same period last year.

This market expansion was driven by a sharp rise in memory prices. Counterpoint Research analyzed that prices for both DRAM and NAND flash rose by more than 50% in the second quarter compared to the previous quarter. The firm explained that the market size expanded significantly as prices for general-purpose memory also rose in tandem, amid increased investment in AI data centers and ongoing HBM supply shortages.

The financial results of major memory manufacturers are also expected to reflect this market growth. Micron, which recently announced its earnings, recorded revenue of $41.46 billion (approximately 64 trillion won) for the third fiscal quarter (March–May), marking a 74% increase from the previous quarter and a 346% increase year-over-year. Its operating profit margin also approached 85%.

SamsungElectronics and SK hynix, which are set to announce their earnings soon, are expected to post even stronger results. Counterpoint Research forecasts that SamsungElectronics’ memory business revenue will exceed 110 trillion won for the first time in history, and predicts that SK hynix will also continue its strong growth momentum, driven by the competitiveness of its HBM-focused products.

However, the firm explained that actual results by company may vary slightly depending on accounting treatments, such as the timing of long-term supply agreements (LTAs) and provisions for performance-based bonuses. Nevertheless, it analyzed that the upward trend in memory demand and prices, driven by expanding AI investments, is likely to continue for the time being.

Counterpoint Research, however, predicted that the current rapid growth trend is unlikely to continue for an extended period. This is because rising memory prices are leading to higher manufacturing costs for finished products and increased consumer prices, causing demand to slow somewhat, while the price-stabilizing effect of expanded long-term supply agreements is also taking hold.

Counterpoint Research stated, “As manufacturing costs rise due to higher memory prices, demand for end products is declining somewhat,” adding, “Combined with the price-stabilizing effect resulting from the expansion of long-term contracts, the memory market’s growth is likely to gradually slow down starting in the second half of next year.”