According to foreign media reports, the current situation of the memory chip market is not optimistic. The slowdown of demand caused by the concern of the global economic recession has affected the demand for terminal products, which in turn has affected the demand for memory chips. Some research institutions predict that the prices of NAND flash memory and DRAM are declining, and the oversupply of the market will intensify next year. Han Jin man, the global marketing director of Samsung's electronic storage business, said at a recent meeting that he would not consider reducing the production of storage chips.
Slowing demand and falling price of memory chips will inevitably affect memory chip manufacturers such as Samsung Electronics and SK Hynix. Samsung Electronics is currently the world's largest memory chip manufacturer, and memory chips are also an important source of revenue and profit for them. When demand and price decline, product manufacturers usually cut production to reduce inventory pressure, improve supply and demand and stabilize prices. However, Samsung Electronics does not plan to cut production when demand for memory chips declines.
Slowing demand for memory chips Samsung Electronics executives said they would not consider reducing production
Samsung Electronics does not plan to cut its output. It was revealed at a meeting held in San Jose, California by Han Jin man, their executive vice president and global marketing director of storage business. He said that they did not have an internal discussion on cutting the output of storage chips.
Han Jin man also disclosed at the meeting that Samsung Electronics' basic position on the issue of reducing the output of memory chips is that it should not artificially reduce production. Samsung is trying to ensure that there is neither a long-term shortage nor an oversupply of chips in the market.
In fact, from the perspective of the balance between supply and demand in the market, storage chips are already in a state of oversupply. A large amount of overstock will make manufacturers face serious losses. However, as the leader of the storage market, Samsung does have enough capital to survive this period. Earlier, Micron Technology has said that it may cut its capital expenditure in fiscal year 2023 (by the end of September 2023) by up to 30% and its expenditure on chip equipment by up to 50% to slow supply growth.