TSMC Revenue Sets New Record: Quarterly Figure Surpasses $26.8 Billion, AI Boom Drives Over 36% YoY Growth

Recovery Stalled! Samsung NAND Revenue Drops Nearly 10% QoQ, Weak Consumer Electronics Demand Offsets AI Gains

According to the latest data from DataTrack, Samsung's global NAND Flash revenue recorded $5.6 billion in the third quarter of 2024, a decline of approximately 9.7% from the previous quarter's $6.2 billion, ending the strong rebound trend observed since the end of 2023. Although the year-over-year increase remains high at 93% compared to the low point of $2.9 billion in the same period last year (2023 Q3)—indicating the industry has moved past the bottom—the revenue correction this quarter suggests the path to market recovery is not entirely smooth. Specifically, growth momentum has slowed significantly as price increases encountered resistance from end-market demand. Observing detailed performance, the market presents a distinct "K-shaped" divergence. On one hand, benefiting from the AI server construction boom, demand for high-capacity enterprise SSDs (eSSD) remains high, serving as a key pillar supporting revenue. However, the consumer electronics sector (smartphones, PCs), which accounts for the bulk of shipment volume, performed weakly. TrendForce and market analyses point out that PC and mobile phone brands adopted conservative inventory strategies in the third quarter. This resulted in insufficient order momentum for Client SSD and UFS memory, with price increases narrowing or even flattening, which directly impacted Samsung's overall NAND revenue scale. Regarding this revenue decline, Samsung admitted during its third-quarter earnings conference call that while demand for AI and servers remains strong, "inventory adjustments by some mobile device customers" led to relatively weak demand for mobile memory. Furthermore, the increased supply from Chinese memory manufacturers in mature processes (Legacy Products) has put pressure on the supply-demand balance of mid-to-low-end products, compelling Samsung to accelerate the destocking of older generations, thereby affecting overall revenue performance and profit structure. Looking ahead, the market is expected to remain in an inventory adjustment period in the short term (1-2 months). Samsung anticipates that mobile and PC demand may remain weak in the fourth quarter, limiting the scope for a revenue rebound and continuing to face price pressure. In the medium term (3-6 months), as AI functions expand to edge devices (AI PC, AI Phone) and the replacement cycle gradually takes effect, coupled with original manufacturers continuing to transition to high-layer (V8/V9) and QLC products to optimize cost structures, the supply-demand structure is expected to improve by the first half of 2025. However, the key remains dependent on the strength of macroeconomic support for consumer buying power. Relevant market information sources: https://news.samsung.com/global/samsung-electronics-announces-results-for-third-quarter-of-2024 https://www.communicationstoday.co.in/nand-flash-revenue-hits-17-6b-in-3q24/ https://www.sammobile.com/news/samsung-q3-2024-profit-chip-struggles/