Source: The content comes from "
Juheng.com
", thank you.
According to South Korean media Business Korea, memory giants Samsung Electronics and SK Hynix will become more conservative in their recent investment plans, suggesting that they are still conservative about the outlook for DRAM in the first half of 2020. Although 5G may boost DRAM demand, server DRAM demand is still expected to be relatively weak.
Business Korea quoted industry insiders as saying that Samsung recently hinted that it would reduce investment, mainly because as memory prices continue to weaken, increasing investment will only lead to further declines in memory prices.
Last month, the price of 8Gb DDR4 DRAM chips reached $2.81 per unit, down 4.42% from the previous month.
Samsung Electronics recently announced that its supply and investment will become more flexible with market conditions as uncertainty related to memory demand continues, but industry sources said the flexibility it mentioned actually means a reduction in investment.
Similarly, SK Hynix recently said that the production and investment of DRAM and NAND flash memory will be reduced in 2020.
NAND flash memory has a lower profit margin than DRAM chips, and its price has fallen to a point close to the break-even point in the first half of this year.
Memory chip manufacturers currently expect that profits will not increase if DRAM chip prices do not rebound.
Samsung Electronics also said most of its capital expenditure of 12.2 trillion won in the fourth quarter of this year will be used for infrastructure related to memory chips rather than production facilities and equipment, meaning investment in semiconductor equipment will not increase significantly.
Samsung Electronics is currently adjusting its overall output by replacing its first-generation 10-nanometer process with its second-generation 10-nanometer process and using some of its DRAM production equipment for CMOS sensors.
SK Hynix will also reduce DRAM production and increase CMOS sensors.
Chinese mobile phone and cloud computing companies have recently increased their purchases of DRAM, which means that demand may decline in the first half of 2020.
Samsung Electronics also said that DRAM shipments grew by more than 30% in the third quarter of this year, but will grow by less than 10% in the next quarter.
SK Hynix said the ratio of its server DRAM business will decline next year compared with the ratio of its 5G-related mobile phone DRAM business.
For most DRAM chip manufacturers, products for mobile phones account for about 35% to 40% of sales, and products for servers account for about 30% to 40% of sales, and the latter are more expensive.
In the future, it is expected that when the server DRAM market recovers, the performance of memory chip manufacturers will also improve.
*Disclaimer: This article is originally written by the author. The content of the article is the author's personal opinion. Semiconductor Industry Observer reprints it only to convey a different point of view. It does not mean that Semiconductor Industry Observer agrees or supports this point of view. If you have any objections, please contact Semiconductor Industry Observer.
Today is the 2126th issue of content shared by "Semiconductor Industry Observer" for you, welcome to follow.
Semiconductor Industry Observation
"
The first vertical media in semiconductor industry
"
Real-time professional original depth
Scan the QR code
, reply to the keywords below, and read more
AI｜
Wafer
｜TSMC
｜RF
｜Huawei
｜
IC
｜
TWS headphones｜Xiaomi
Reply
Submit your article
and read "How to become a member of "Semiconductor Industry Observer""
Reply
Search
and you can easily find other articles that interest you!
京公网安备 11010802033920号