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Samsung and SK Hynix to slow down memory production

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Just when you think you are out they pull you right back in. Signals have been green for DRAM and NAND production for a while now, it was expected that prices would drop later in the year and into 2019. However, Samsung and SK Hynix will slow down memory production, as they see falling demand.

Both Samsung and SK Hynix had plans for expansion of their memory chip factories. Due to increased production and declining demand Nand flash is expected to fall ~15% in price in the third quarter and to drop another 15% in the Q4. This has its effect on DRAM chips production. The overcapacity that both companies report, actually also would affect NAND (flash memory) production. The new development means that Samsung has canceled certain related plans factories in Hwaseong and Pyeontaek, while SK Hynix has also postponed expansion.

With both companies canceling their expansions, it remains to be seen what the effect long-term on memory and NAND prices will be,

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