The price of SSD and other storage has plummeted. It is reported that Samsung will make troubles and reduce production! Are there domestic storage manufacturers not afraid?
South Korea’s semiconductor production fell 17.1 percent in February from the previous month, the biggest drop since December 2008, when semiconductor production plummeted 18.1 percent, according to data released by Statistics Korea on Friday.
Semiconductor production was down 41.8% in February compared to the same period last year. A person from Statistics Korea said that since the second half of last year, the global demand for memory chips has weakened, and the output of system semiconductors has also declined recently.
Chip inventories rose 33.5% in February, while factory shipments fell 41.6%.
Chipmakers are an important part of South Korea’s trade-dependent economy, accounting for about 12% of total exports in February. Deteriorating global chip demand has compounded the challenges facing the South Korean economy.
Subsequently, according to South Korean media sources, Samsung Electronics, the world’s leading memory chip company, reported that it was considering reducing production in order to cope with the sluggish market conditions. The market expects that Samsung’s reduction in production will help the memory market to accelerate and improve.
Interestingly, former Samsung Chairman Lee Jae-yong recently held a meeting with executives from the company’s chip division. Some executives raised the need to cut production, while Lee Jae-yong made a decision not to cut production.
In the first quarter of 2023, the production lines of Kioxia and Micron will continue to be under low load. Western Digital, SK Hynix, Samsung, etc. will follow suit to reduce production, which may alleviate the current situation of oversupply. The average price decline of NAND Flash will also converge to 10%-15% %.
Due to the sluggish demand, even if manufacturers reduce production to combat losses, it is expected that the revenue of the NAND Flash industry in the first quarter will still decrease by 8.1% quarter-on-quarter.
SSD prices continue to decline. Even if Samsung and other major manufacturers reduce production and control prices to reduce inventory, there will still be no major problems. After all, demand is too weak, and domestic storage manufacturers are on top.