SAMSUNG SLOWS MEMORY CHIP PRODUCTION TO KEEP PRICES STABLE
Semiconductor vendor is preparing to decelerate its memory chip production for 2019
Semiconductor vendor Samsung, is preparing to decelerate its memory chip production for 2019 in anticipation of a decline in demand.
The South Korean manufacturer’s move is a double-edged sword as it can either help maintain NAND flash and dynamic random access memory (DRAM) prices or further drive up prices.
At the beginning of 2018, Samsung’s optimism had the company believe that the bit growth for DRAM and NAND would rise
20% and 40%, respectively in 2018. Bit growth is a term used inside the industry to refer to the amount of memory produced. It’s an important metric for measuring demand and allows manufacturers to plan their production.
Samsung’s latest forecast look pretty grim as the company expects DRAM bit growth to rise less than 20% and NAND to increase 30%.
Anthea Lai, analyst at Bloomberg, said Samsung would prefer a situation where supply is tight and prices are high, rather than gaining more market share and running the risk of lower prices.
Samsung is currently the largest NAND and DRAM maker globally.
The company produces memory chips for smartphones, computers and other electronic devices.
Samsung was expecting bit growth for DRAM and NAND would rise 20% and 40% in 2018.