Samsung and sk hynix want to prevent the ram from falling in price

DigiTimes has reported on plans by major memory manufacturers such as Samsung and SK Hynix to slow down its expansion of manufacturing capacity for NAND and DRAM following a lower-than-expected demand forecast for the first half of 2019.

Samsung and SK Hynix slow expansion to keep prices high

This alleged move comes at a time when DRM prices are extremely prohibitive due to demand greater than manufacturing capacity. In the past we have seen companies slow down their expansions in manufacturing capacity as a way to artificially keep commodity prices high in memory manufacturing. NAND is another case, as the price per GB has been falling like a rock over the past few months, and now companies want to thwart lower expected demand with lower production values.

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According to reports, Samsung has put its plans to launch additional new production capacity for 1ynm DRAM chips at its factories in Hwaseong and Pyeongtaek. The chip provider previously planned to build an additional 30, 000 wafers on a monthly basis starting in the third quarter of 2018, but is now looking to reduce that number to prevent prices from dropping excessively. Sk Hynix is ​​also reported to have slowed down its projected production, but details are scarcer in this case.

In short, we are talking about the fact that a drop in the prices of RAM is expected, something that manufacturers do not like, so they will do everything in their power to maintain current prices and continue to earn a lot of money.. Let's hope regulators get down to business and finish their plans to artificially maintain current prices.

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