Samsung

Samsung is going to put an end to memory deficit

One and a half years! For 18 long months, prices for RAM are rising without a slightest attempt to reverse the tendency. During this time average wholesale price for 4GB DDR4 module increased for 130%: if in the second quarter of 2016 one RAM module was around £10, it is £23. Could that be the reason why Apple still installs DDR3 in their computers?

 

Naturally, it is not a tragedy at all for memory manufacturers. For example, Samsung, the leading manufacturer of memory, tripled its profits in this sector. Additionally, because on the shortage, Samsung managed to beat Intel and sold more chips than Intel. Neither SK Hynix nor Micron experience financial recession. When there are only 3 participants in the market of RAM, it is easy for them to simply ignore the deficit and keep earning due to the price increase.

 

Luckily, for us, consumers, Samsung is planning to end the deficit and increase the production. According to  DRAMeXchange, the company considers increasing memory production by 23% by the end of 2018. Why would they do such a thing? Well, increased capital of SK Hynix and Micron gives them more freedom for manoeuvres, such as increasing number of production lines or transitioning to a more advanced technology. And yes, SK Hynix recently announced that they will be building a second factory in China. So instead of waiting until competitors become stronger, Samsung decided to act first.

 

Yet, we can expect the end of RAM shortage and its price increase sooner than the end of 2018. Now, when Samsung made the announcement, we expect its competitors to make the move as well.

 

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email