Samsung Semiconductor recently announced to delay its DRAM production capacity expansion plan. According to the original plan, Samsung will increase its monthly production of 30,000 DRAMs this quarter. The plan is now postponed until the end of this year. According to analysis by supply chain people, DRAM prices will remain stable until end of this year as Samsung’s capacity expansion is delayed and market supply is limited.

The price of DRAM has soared for nine consecutive quarters. The dynamics of the three major manufacturers such as Samsung, SK Hynix and Micron will be the key to the next market trend. According to recent market trends, DRAM prices have been stable, mainly because manufacturers have added new capacity.

It is understood that Samsung originally planned to expand production on the second floor of its LINE 16 plant, and build a new production line with a monthly output of 65,000 pieces. In the first half of the year, it completed the first phase of production increase of 35,000 pieces per month.It was originally planned to increase production capacity by 30,000 units during this quarter, but the plan has been decided to be postponed until December this year.

Samsung did not disclose the reasons for delaying the expansion. According to industry analysis, memory chip is the largest source of Samsung Group’s revenue, accounting for 78% of the Group’s total profit, of which more than 70% comes from DRAM. In the DRAM supply and demand structure, the original supply gap has recently narrowed, leading to recent price trends stable. Samsung considers that if it increases production by 30,000 pieces per month, it will change the supply shortage of the original DRAM market, resulting in oversupply and DRAM prices will fall.