Industry News

Memory chip manufacturers face both volume and price declines

Views : 10
Update time : 2022-10-10 14:53:53
        On October 9, Samsung Electronics Co., Ltd. and other memory chip manufacturers in South Korea faced the decline in chip prices and demand at the same time recently. Some industry insiders predict that the price reduction of memory chips will not bottom out or ease until the middle of next year.
 
 
        Memory chips are mainly used for smart phones, personal computers and data servers, and prices began to fall at the end of last year. The Wall Street Journal reported on the 7th that memory chips can be called a barometer of the semiconductor industry.
        The Wall Street Journal quoted the analysis of industry institutions and reported that in the third quarter of this year, the contract prices of two main types of memory chips, DRAM and NAND flash memory, fell 15% and 28% month on month respectively; With the overstock of inventory, the prices of these two chips are expected to continue to decline in the fourth quarter and the whole year of next year, but the double-digit decline should end in the spring of next year and stabilize by the end of next year.
        Samsung Electronics, the world's largest memory chip manufacturer, forecast on the 7th that its operating profit in the third quarter decreased by 32%, far worse than analysts' expectations. SK Hynix in South Korea expects its operating profit to decrease by about 40% year on year in the current quarter.
        According to the data provided by Gartner Consulting, memory chips account for about 27% of the semiconductor industry's total revenue of $619 billion in 2022.
        The World Semiconductor Trade Statistics Association predicted that in 2023, the growth rate of memory chip revenue will be the smallest among all kinds of chips, only 0.6%; Logic chip revenue will increase by 8.1%; The revenue of analog chips will increase by 6.4%; The revenue of sensor chips will increase by 3.9%. 
        The Wall Street Journal believes that a variable that affects the price of memory chips is whether manufacturers cut production. Last week, Nihon Hiroshima Holdings said that its NAND flash memory output has decreased by about 30% since October. 
        Samsung Electronics and SK Hynix have not disclosed their possible production plans. However, the Wall Street Journal reported that a senior executive of Samsung's electronic memory chip business said this week that the company's strategy was not to deliberately reduce production, and did not see the urgency of the need to reduce production immediately. SK Hynix declined to comment on the topic of production reduction, but company executives said in the second quarter financial report meeting that capital expenditure would remain flexible to cope with the market environment.

 
Related News
Read More >>
How many chips does a car need? How many chips does a car need?
Sep .19.2024
Automotive chips can be divided into four types according to their functions: control (MCU and AI chips), power, sensors, and others (such as memory). The market is monopolized by international giants. The automotive chips people often talk about refer to
Position and Function of Main Automotive Sensors Position and Function of Main Automotive Sensors
Sep .18.2024
The function of the air flow sensor is to convert the amount of air inhaled into the engine into an electrical signal and provide it to the electronic control unit (ECU). It is the main basis for determining the basic fuel injection volume. Vane type: The
Chip: The increasingly intelligent electronic brain Chip: The increasingly intelligent electronic brain
Sep .14.2024
In this era of rapid technological development, we often marvel at how mobile phones can run various application software smoothly, how online classes can be free of lag and achieve zero latency, and how the functions of electronic devices are becoming mo
LDA100 Optocoupler: Outstanding Performance, Wide Applications LDA100 Optocoupler: Outstanding Performance, Wide Applications
Sep .13.2024
In terms of characteristics, LDA100 is outstanding. It offers AC and DC input versions for optional selection, enabling it to work stably in different power supply environments. The small 6-pin DIP package not only saves space but also facilitates install