Thursday, April 27th 2023
SK Hynix Believes the Memory Chip Market Has Hit Rock Bottom
Yesterday SK Hynix reported its Q1 2023 results and to say that they were abysmal is being kind, as the company reported a 3.4 trillion won operating loss, or just over US$2.5 billion. That's no small hit to take for any company, especially when it's only the performance for a single quarter. However, SK Hynix is apparently trying to see its situation from a positive perspective and believes that the memory chip market will rebound in the second half of this year. The positive outlook isn't just based on what SK Hynix believes though, as various analysts and securities companies believe in an upswing in the second half of the year.
That said, Micron, one of SK Hynix main competitors, has a more drab outlook for the remainder of 2023 and is expecting a tough year ahead. SK Hynix is expecting production cuts by itself, Micron and Samsung to start to take effect sometime in the second quarter this year, which should see inventory drop to more normal levels for all three companies. SK Hynix is also expecting to see a higher demand for DDR5 DRAM later this year, especially in the mobile and server market space. Finally, SK Hynix is hoping that its customers will buy higher density memory products this year, replacing older, lower density solutions, be that DRAM or NAND flash related. SK Hynix is expecting to launch its Gen 5 10 nm DRAM and 238-layer NAND sometime next year, which the company is also hoping will bring more income to its coffers, but the company still has to make it through the rest of 2023 first.
Source:
The Elec
That said, Micron, one of SK Hynix main competitors, has a more drab outlook for the remainder of 2023 and is expecting a tough year ahead. SK Hynix is expecting production cuts by itself, Micron and Samsung to start to take effect sometime in the second quarter this year, which should see inventory drop to more normal levels for all three companies. SK Hynix is also expecting to see a higher demand for DDR5 DRAM later this year, especially in the mobile and server market space. Finally, SK Hynix is hoping that its customers will buy higher density memory products this year, replacing older, lower density solutions, be that DRAM or NAND flash related. SK Hynix is expecting to launch its Gen 5 10 nm DRAM and 238-layer NAND sometime next year, which the company is also hoping will bring more income to its coffers, but the company still has to make it through the rest of 2023 first.
20 Comments on SK Hynix Believes the Memory Chip Market Has Hit Rock Bottom
The final product is expensive, but the memories are not.
Something very clear is that the problem is not the memory manufacturers, there is something very wrong happening with the Hardware Brands or logistics... Idk, Someone is robbing us.
buy buy buy now while the prices are good
then wait another 6 years until good again
They sell now good g.skill 2x16 DDR5 rams for 123-143€, but that too will be cheaper later.
People complain about nVidia's prices. How many people do you think, just here at TPU, have bought a new nVidia GPU since without regard to how much nVidia is screwing them, just to get a really good GPU. I still have my laptop and a Vega 64. I'm not encouraging this feckless behavior, but a lot of people here are. The best way to reduce cost of goods is to reduce demand, so if it costs a lot, maybe you shouldn't freaking buy it, because if you do, businesses will know that you're willing to pay it, which is a huge mistake.
</soapbox>
maybe this time, they will get really creative & make all 4 happen at the same time..:roll:
So yea, I agree.... now is the time to buy, buy, buy....hold, hold, hold, then sell, sell, sell, & make some serious bank while you can !
Ah, don't ya just luv capitalism 101, hehehehe ?
1st quarter 2023 1.1% GDP. Less than the past quarter and YET you got the standard yahoo's pointing out that consumer spending is STRONK. These morons are lying through their teeth by technical truths.
YES spending his higher than last quarter but so is the basic costs of FOOD. Utilities Etc. Consumers are spending more for because they are getting LESS because of inflation.
YAY it look great on statistical analysis spread sheets but in real life.... In my region a taco bell taco was 2 Tacos for 99 cents 2 years ago. It is now $1.69. Walmart Cheapest Bread was 88 cents 2 years ago. $1.12 on January 2023. $1.36 on April 2023. 36% increase over 2 years ago.
Basic food items in my region are 30 to 60% higher than 2 years ago. Those are just the facts in my region because....
This is what I do for a living. I take all sorts of data from the media that is generally a false narrative of word salad doublespeak. Sift out the BS and make an assessment on where to invest. People are not buying tech. They are deferring it because of the cost of living. They are deferring a lot of things.
To have this fool state this nonsense about memory bottoming out? Man... just give me what he is smoking and I'll call it a day.
That's the only thing that's going to happen. If your job is not working with your hands or requires a security clearance than you are not going to have a job. Become homeless or if you are lucky slice your income in half, no health insurace or retirement either.
It's not the people without jobs right now who are lazy, it's that our system demands mass pain to recover. That's capitalism!