Recently, the industry has different opinions on the trend of the memory market. Some analysts said that Samsung Electronics and SK Hynix may flexibly adjust the supply to meet market demand, thus avoiding the fall in DRAM prices. The Korean financial industry has predicted that Samsung and SK Hynix will continue to expand DRAM supply, calling on manufacturers to suspend investment.
Experts who advocate that the memory price has reached its peak point that Samsung Electronics and SK Hynix continue to increase investment, which will cause prices to fall. The Korean industry said that the continuous development of memory process technology will naturally drive down the price of products. If producers want to maintain a certain market price, they need to actively control the supply.
In fact, Samsung Electronics is slowing down the production speed of the DRAM line in the Pyeongtaek plant, it is a conservative supply strategy. It is reported that the remaining investment of the Pyeongtaek plant will not be implemented until the end of 2018. The new M15 plant to be launched by SK hynix will mainly produce NAND Flash, and the DRAM factory M16 is scheduled to start in 2019.
According to the report, Samsung Electronics has recently reduced the proportion of low-margin mobile DRAM production and increased the profitable server DRAM supply. The slow decline in DRAM prices may be affected by this, not entirely due to the oversupply caused by the market.
The Korean financial industry has called for the two major Korean factories to reduce their investment in expansion and avoid excessive price declines. From the current situation, Samsung Electronics is unlikely to invest in new production lines for DRAM and NAND Flash in the second half of 2018. SK hynix has implemented some new investments in NAND Flash in the third quarter, and DRAM will not be invested until the end of 2018 or early 2019.
