Samsung Electronics and SK Hynix have experienced a notable reduction in their semiconductor inventory assets over the past year, driven by the surging demand for high-value-added DRAMs, such as high-bandwidth memory (HBM), fueled by the artificial intelligence (AI) boom.

According to the third-quarter report disclosed by Samsung Electronics on Nov. 14, the inventory assets of its semiconductor (DS) division amounted to 31 trillion 596.3 billion won (approximately $441.7 million). This figure represents a decrease of 2 trillion 134.4 billion won (6.3%) from 33 trillion 730.7 billion won in the same period last year. The proportion of inventory assets to total assets for Samsung Electronics also decreased from 12.2% last year to 10.9%.

Similarly, SK Hynix’s third-quarter report shows inventory assets amounting to 13 trillion 353.9 billion won, a decrease of approximately 10.6% (1 trillion 594 billion won) from 14 trillion 947.9 billion won in the third quarter of last year. The proportion of inventory assets to total assets for SK Hynix decreased from 14.6% last year to 12.3%.

Over the past year, Samsung Electronics’ inventory turnover ratio increased from 3.3 times to 3.5 times, indicating improved efficiency in managing its inventory. SK Hynix also saw an increase in its inventory turnover ratio from 2.1 times to 2.5 times over the same period.

As of now, both companies continue to manage their inventory levels efficiently, with a focus on meeting the demand for high-performance memory products. The reduction in inventory assets and the increase in inventory turnover ratios indicate a positive trend in their inventory management practices.