Today's Hard|Forum Post
Today's Hard|Forum Post

Friday September 21, 2018

Samsung Expected to Slow Memory Chip Output to Maintain Market Pricing

According to sources, Samsung has decided to slow memory chip output to create more market demand. This in turn will keep prices high or possibly even drive them up higher as the corporation seeks to maintain its bit growth projections of 20% for DRAM and 40% for Nand in 2018. If Samsung continues to produce chips at its current pace, the estimated growth projections would have dropped to less than 20% for DRAM and only 30% for Nand flash memory. With only 3 major memory manufacturers left in the sector, this will inevitably raise the price of similar products at SK Hynix Inc. and Micron Technology Inc.

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"If Samsung does cut its DRAM bit growth, it shows the company is happy with the current oligopoly market structure," said Anthea Lai, an analyst at Bloomberg Intelligence in Hong Kong. "It prefers keeping supply tight and prices high, rather than taking market share and risking lower prices, therefore chances for DRAM prices to stay strong is higher." Bit growth, which refers to the amount of memory produced, is a key barometer for gauging market demand.