'

Samsung reportedly plans to lower chip growth targets to maintain high DRAM/NAND pricing

Samsung's 'bit growth' is much lower than previously predicted

Samsung reportedly plans to lower chip growth targets to maintain high DRAM/NAND pricing

Samsung reportedly plans to lower chip growth targets to maintain high DRAM/NAND pricing

A report from Bloomberg has claimed that Samsung plans to reduce their DRAM/NAND production growth estimates to maintain high DRAM/NAND pricing until 2019. 

Earlier this year, Samsung expected bit growth, a term for production growth (More bits of memory produced), to be 20% for DRAM and 40% for NAND. Now, Samsung expects bit growth to be less than 20% for DRAM and 30% for NAND flash, significant decreases in potential output. 

Samsung claims that they are "flexibly managing capacity in line with the market supply-demand situation", though the consequence of this move is undoubtedly bad for consumers, as increased supply would lower the pricing of DRAM and NAND and in turn lower the pricing of a wide range of consumer electronics.  

Right now, Samsung remains the leader of the DRAM market, producing more chips than competitors like Micron Technology and SK Hynix. If Samsung acts alone, the company could lose market share to their competitors while keeping chip prices high. If the company held to their initial plans, they could increase their market share at the cost of lower DRAM pricing. 

DRAM demand has fallen significantly thanks to the weakening smartphone market, a market which has been substantially impacted by high memory pricing.  
 

Samsung reportedly plans to lower chip growth targets to maintain high DRAM/NAND pricing  


With so few players in the DRAM market, there is a risk that other DRAM manufacturers will follow Samsung's lead, maintaining high prices with decreased expansion targets. Alternatively, Samsung's competitors could maintain their current growth targets and aim to increase their market share.

You can join the discussion on Samsung's reported plans to lower their chip growth targets to maintain high DRAM/NAND pricing on the OC3D Forums.  

«Prev 1 Next»

Most Recent Comments

21-09-2018, 05:57:14

Dicehunter
Wow, Talk about greed.Quote

21-09-2018, 06:02:45

Eddie long
Unfortunately that's the way of the world, got to keep there share holders happy and profit figures upQuote

21-09-2018, 06:19:07

Daiyus
They're going to price tech enthusiasts out of the market. The main thing stopping people building new PC's or upgrading to modern platforms is the insane RAM prices.

Sure that's capitalism but it's still a anti-consumer move by Samsung.Quote
Reply
x

Register for the OC3D Newsletter

Subscribing to the OC3D newsletter will keep you up-to-date on the latest technology reviews, competitions and goings-on at Overclock3D. We won't share your email address with ANYONE, and we will only email you with updates on site news, reviews, and competitions and you can unsubscribe easily at any time.

Simply enter your name and email address into the box below and be sure to click on the links in the confirmation emails that will arrive in your e-mail shortly after to complete the registration.

If you run into any problems, just drop us a message on the forums.