Thursday, September 6th 2018
Samsung, SK Hynix Slowing Down NAND, DRAM Fab Expansion Plans in Wake of Lower Demand Projections
DigiTimes is reporting plans from both Samsung and SK Hynix to slow down their fabrication capacity expansion plans for NAND and DRAM in wake of lower than expected demand projection for the first half of 2019. This move comes at a time where DRM pricing is still extremely prohibitive due to "higher demand than fabrication capacity output" - and we'd already seen the companies base their fabrication expansions on lower than expected demand increases, as a way to artificially keep pricing for the memory commodity high. NAND is another case - price per GB has been dropping like a rock. And now, the companies want to thwart expected lower demand with lower production values.
Samsung, for one, has reportedly put its plans for additional new production capacity for 1ynm DRAM chips at its fabs in Hwaseong and Pyeongtaek on hold. The chip vendor previously planned to build an additional 30,000 wafers monthly for DRAM memory starting the third quarter of 2018, the sources said - but is now looking to reduce that number to keep pricing from bottoming out. Sk Hynix is also reported to have slowed down its projected production, but details are scarcer on that side of the fence. All in all, it seems that whether there is demand or not, seeing DRAM prices falling to their previous levels is a dream in both name and, not paradoxically, reality.
Source:
DigiTimes
Samsung, for one, has reportedly put its plans for additional new production capacity for 1ynm DRAM chips at its fabs in Hwaseong and Pyeongtaek on hold. The chip vendor previously planned to build an additional 30,000 wafers monthly for DRAM memory starting the third quarter of 2018, the sources said - but is now looking to reduce that number to keep pricing from bottoming out. Sk Hynix is also reported to have slowed down its projected production, but details are scarcer on that side of the fence. All in all, it seems that whether there is demand or not, seeing DRAM prices falling to their previous levels is a dream in both name and, not paradoxically, reality.
23 Comments on Samsung, SK Hynix Slowing Down NAND, DRAM Fab Expansion Plans in Wake of Lower Demand Projections
Followed by prices trying to touch the freaking sky. Freaking again.
You mean lower price projections. Prices triple. Then headline news, "RAM to crash 25%." That's not a crash, buddy.
I paid $380 for my TridentZ RGB 32GB B-Die kit back in early august. (4x8GB) Brand new from Newegg on sale. That same kit a month earlier was $500-520.
Seems like lying, cheating and misleading has become the new norm.
China...you definitely have a point
Taiwan and South Korea...somewhat of a point
India, Singapore and the other 52 nations in the geographical Asia? Really?