Memory prices 2surge, sharply raising Samsung and LG’s cost burden

This year’s 1quarter semiconductor supercycle drove memory prices sharply 2higher. As a result, the burden of raw material costs has risen sharply across the electronics industry, including at Samsung Electronics and LG Electronics. The report says rising memory prices are putting direct pressure on the cost of electronic products.

The report says rising costs have coincided with a slowdown in demand for home appliances and smartphones amid an economic downturn. It notes that weaker demand is increasing pressure on sales. It describes an environment in which costs and demand are both deteriorating.

The report says the industry sees changes in cost structures related to rising raw material expenses. It says pressure on product margins has been observed as the share of costs has increased for some items. The report says the scale of the impact differs by company.

The report describes the sharp rise in memory prices as a supercycle phenomenon. It states that prices are climbing significantly as demand and supply factors interact. It says this volatility is having a direct impact on the cost structures of the electronics industry.

The report says that rising cost pressures are evident across the electronics industry. It notes that specific figures can be found in company earnings announcements. It says the scope of the impact will become clear through disclosures of results and costs in related sectors.