Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is your outlook in terms of bit growth for DRAM and NAND in the fourth quarter, and how do you plan to innovate your foldable lineup for 2025? A: For DRAM, we expect limited production growth for DDR5 and LPDDR5X due to inventory adjustments by Chinese mobile clients. DRAM bit growth is expected to decline to mid-single-digits in Q4. For NAND, server SSD revenue is expected to increase by 10% Q-on-Q, but overall NAND bit shipment growth will be limited to low-single-digits. Regarding foldables, we aim to offer a differentiated experience by making the Fold slimmer and lighter and enhancing the Flip's design. We are also considering ways to ease purchase barriers for foldable devices.
Q: Can you explain the memory business results in terms of both sales and profit for the third quarter? A: In Q3, we focused on high value-added products and expanded sales of aging inventory. DRAM and NAND ASPs saw high single-digit growth, with total memory revenue posting mid-single-digit growth Q-on-Q. HBM sales grew by over 70% Q-on-Q. However, operating profit declined due to lower inventory valuation loss reversals, one-off costs, and a weaker USD.
Q: What is the status and plan for HBM, specifically HBM3E? A: In Q3, HBM sales grew by over 70% Q-on-Q, with HBM3E accounting for a low- to mid-10% of total HBM sales. Despite some commercialization delays, we expect HBM3E to account for about 50% of HBM sales in Q4. We are preparing enhanced HBM3E products for key customers, with mass production planned for the first half of next year. HBM4 development is on track for mass production in the second half of 2025.
Q: Could you elaborate on your memory outlook for 2025 and CapEx plans? A: In 2025, we expect constrained supply growth due to conversion to advanced nodes and limited clean room availability. Demand will be robust for AI-related HBM, server DRAM, and server SSD, while mobile demand may recover post-inventory adjustments. CapEx will focus on advanced node conversion rather than capacity expansion, with investments in HBM packaging and clean rooms to strengthen competitiveness.
Q: What are your CapEx plans for foundry, and how do you plan to address competition in the mid- to low-end VD market? A: Foundry CapEx will focus on maximizing existing infrastructure utilization and R&D for cutting-edge processes. For VD, we will strengthen premium segment leadership and expand entry-level line-ups, focusing on cost efficiency and manufacturing competitiveness. We will also emphasize SmartThings security and ESG to deliver unique customer experiences.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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