Samsung, SK Hynix Slowing Down NAND, DRAM Fab Expansion Plans in Wake of Lower Demand Projections

[Raevenlord]

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.



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[Easo]

I wish they will get punished, severely, so that even Samsung actually feels the fines, for what in my opinion is nothing more than a price fixing.

 

[ZeppMan217]

Cartels for all!

 

[NdMk2o1o]

The demand is probably huge though lots of people like me look at the cost of ram and would rather make do with what they have, rather than pay the current extortionate prices.

 

[Upgrayedd]

DRAM bottoming out lmao what a load of crap

 

[windwhirl]

And then they'll say "demand was higher than expected".

Followed by prices trying to touch the freaking sky. Freaking again.

 

[Slizzo]

Well, they're certainly pricing themselves out of demand.

 

[xorbe]

> lower demand projections

You mean lower price projections. Prices triple. Then headline news, "RAM to crash 25%." That's not a crash, buddy.

 

[kastriot]

Everyone wants cheap memory, if 2x16GB DDR4 was 99$ it would sold like hot cookies but nope.

 

[TheOne]

I spent less than $70 for my 16GB stick back in 2016, now the lowest is hovering around $130.

 

[Prince Valiant]

Why am I not surprised they were lying through their teeth about expanding production ? Time for another year of inflated PC hardware prices .

 

[Naito]

Why does this not surprise me?

 

[xkm1948]

 

[Aquinus]

You know, demand might be higher if they stopped artificially inflating the price.

 

[Flyordie]

Well, prices have been coming down slightly. Samsung needs to shift production. Make more B-Die, cut back on the other stuff.

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.

 

[hat]

Heh, pretty much agree with everyone else here. Seems manufacturing is only half the game. The other half is spinning it to artificially inflate price.

 

[TheGuruStud]

Next article: “Flash makers say they’re going bankrupt amidst falling prices and must reduce production”

 

[Prima.Vera]

After the Huawei fiasco, I am starting to gradually loose all my faith in all Asian's "honest" type of business.
Seems like lying, cheating and misleading has become the new norm.

 

[windwhirl]

After the Huawei fiasco, I am starting to gradually loose all my faith in all Asian's "honest" type of business.
Seems like lying, cheating and misleading has become the new norm.

Don't forget about stealing other companies' IP.

 

[Rockarola]

After the Huawei fiasco, I am starting to gradually loose all my faith in all Asian's "honest" type of business.
Seems like lying, cheating and misleading has become the new norm.

Asia as in Boise, Idaho? (Micron)
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?

 

[hat]

Asian businesses are dishonest. That may be true, but let's not forget the plethora of businesses run by people that aren't Asians which are also dishonest.

 

[Prima.Vera]

Asia as in Boise, Idaho? (Micron)
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?

You forgot Japan, where Sony, Panasonic, Toshiba, etc, are selling their products for DOUBLE the price compared with North/South Americas. Or where the phone companies like Softbank and Docomo have the most callous and overly expensive monthly contracts from Asia, and definitely Top 3 in the world, while their customer support services are THE WORST in the whole Japan.

 

[Rockarola]

You forgot Japan, where Sony, Panasonic, Toshiba, etc, are selling their products for DOUBLE the price compared with North/South Americas. Or where the phone companies like Softbank and Docomo have the most callous and overly expensive monthly contracts from Asia, and definitely Top 3 in the world, while their customer support services are THE WORST in the whole Japan.

That's not dishonesty, that's just sound business (I'm not defending it, just saying that any company will charge what the market will bear...look at Apple)

 

[stimpy88]

If people aren’t buying your NAND, then maybe it costs too much? No?