Feb 21, 2023 17:00:00

DRAM prices fall for the second consecutive quarter, chip makers announce production cuts but Samsung plans to continue investing

Due to the pandemic of the new coronavirus infection (COVID-19) and the increased demand for virtual currency mining, there has been a global shortage of semiconductors since 2020, but in the second half of 2022, it will turn into an oversupply. I was. Under such circumstances, market research company TrendForce reported that the price of

DRAM , a type of volatile memory (RAM), recorded record declines for two consecutive quarters in the third and fourth quarters of 2022. .

Research Reports | TrendForce - Market research, price trend of DRAM, NAND Flash, LEDs, TFT-LCD and green energy, PV
https://www.trendforce.com/research/download/RP230220PV

Samsung, Hynix Pain Deepens as Price Collapse Echoes 2008 Crisis - Bloomberg
https://www.bloomberg.com/news/articles/2023-02-20/samsung-hynix-pain-deepens-as-price-collapse-echoes-2008-crisis

Samsung & Companies Witness Significant DRAM Price Collapse
https://appuals.com/samsung-witness-dram-price-collapse/

For about two years from 2020, the shortage of semiconductors has become a global problem, and chip manufacturers have invested in production facilities to solve the supply shortage. However, from the latter half of 2022, due to factors such as a decrease in demand for PCs and smartphones and concerns about an economic recession, the situation will turn around and the inventory will be in a state of oversupply.

While semiconductor shortages are being resolved, PCs and smartphones are not selling well, and chip inventories are exploding. What are the voices of each manufacturer? -GIGAZINE

Meanwhile, TrendForce reported that the average price of DRAM dropped 31.4% in the third quarter of 2022, followed by a 34.4% drop in the fourth quarter. The graph below shows the historical DRAM price declines since 2006 in terms of quarters and percentage declines, with record declines in Q3 and Q4 FY2022. I can see that it was. Also, you can see that the average price of NAND sold to data centers and companies has also fallen significantly.

Overseas media Bloomberg says memory chip makers such as Micron Technology , SK Hynix , and Kioxia will cut production in the second half of 2022 due to a global semiconductor oversupply, slowing down plans to expand facilities. .

Meanwhile, Samsung , the world's largest memory supplier, has decided to keep capex spending in 2023 at the same level as the previous year , unlike its competitors. According to Bloomberg, Samsung is betting on long-term growth in storage-intensive cloud services, connected cars , and AI systems.

In addition, TrendForce points out that server DRAM is strong among DRAMs, and that DRAM suppliers are changing their product configurations. By 2023, server DRAM shipments are expected to exceed mobile DRAM shipments.

Press Center | TrendForce - Market research, price trend of DRAM, NAND Flash, LEDs, TFT-LCD and green energy, PV
https://www.trendforce.com/presscenter/news/20230220-11572.html