SAM­SUNG SLOWS MEM­ORY CHIP PRO­DUC­TION TO KEEP PRICES STA­BLE

Semi­con­duc­tor ven­dor is pre­par­ing to de­cel­er­ate its mem­ory chip pro­duc­tion for 2019

Channel Middle East - - Components -

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.

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