Samsung and SK Hynix to slow down memory production
Just when you think you are out they pull you right back in. Signals have been green for DRAM and NAND production for a while now, it was expected that prices would drop later in the year and into 2019. However, Samsung and SK Hynix will slow down memory production, as they see falling demand.
Both Samsung and SK Hynix had plans for expansion of their memory chip factories. Due to increased production and declining demand Nand flash is expected to fall ~15% in price in the third quarter and to drop another 15% in the Q4. This has its effect on DRAM chips production. The overcapacity that both companies report, actually also would affect NAND (flash memory) production. The new development means that Samsung has canceled certain related plans factories in Hwaseong and Pyeontaek, while SK Hynix has also postponed expansion.
With both companies canceling their expansions, it remains to be seen what the effect long-term on memory and NAND prices will be,
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Hopefully it means there something better to come.
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Prices are expected to drop? Let's lower production to increase the demand / offer ratio and still keep up revenue.
Such news are just a smack in the face to everybody with even a brink of a brain. I'm sick of reading it tbh. (Nothing against bringing the news as Hilbert does, it's just they're so blatanly lying it's disgusting.)
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for 16GB DDR4 i have to fork out US $ 250, 2 years ago it was half that!
Scum of the earth memory producers.
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...due to record high prices. Oddly enough Samsung and Hynix are baffled and wonder why nobody wants to buy their overpriced products. Analysts facepalm and wonder when Samsung and Hynix will get their act together.
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This is insane, but makes perfect sense since we all know the astronomical DRAM prices of late aren't normal. They were clearly designed by a cartel formed by the manufacturers, and no official anywhere in the world seems to have any power over them. Just like oil cartels work smoothly, backed by governments. But then again, if Samsung is the spokesman for these companies, nothing is surprising considering its dirty past.
These are sad times for PC builders.