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DRAM exposed in the second half of the market

Following Samsung and Micron, South Korea's memory giant SK Hynix also decided to slow down the pace of the mainland's Wuxi DRAM new plant to set a production capacity of up to 180,000 pieces per month, which will help eliminate the market's oversupply of short-term supply and let the DRAM price fall. .

The legal person pointed out that Samsung, Hynix and Micron are the top three DRAM manufacturers in the world, with a total market share of over 95%. The three companies have slowed down their production and helped the market supply to be controlled. The market conditions in the second half of the year are expected to enter a positive cycle. It is beneficial to Taiwan Instruments such as South Asia Branch.

The memory industry said that the three major memory factories have slowed down the increase in DRAM production. It seems that the uncertainties in the Sino-US trade war have also increased, which has weakened the downstream buying power. The three DRAM manufacturers have increased their inventory simultaneously. I am afraid that the short-term supply will be too difficult to understand, and the price cannot stop falling.

According to industry analysts, the DRAM business of the three major manufacturers is still making profits, and it is also the most important source of profit for each company. If the production capacity is not strictly controlled, it will lead to a continuous decline in profit. The three major factories have successively filled the pace of expansion. The most important thing is to make the market supply moderate, and drive the market conditions to develop in the positive direction, so as to maintain a stable profit situation for its own company's DRAM business.

According to the Korean media Investor, SK Hynix originally planned to spend 950 billion won (about 800 million US dollars), next to the Wuxi C2 plant in mainland China, to build a C2F plant to produce DRAM, the new plant was completed in April this year, originally scheduled for the third The season is fully mass-produced at 10 nm, with a monthly capacity of 180,000 pieces.

According to sources, SK hynix considered the Sino-US trade war, which led to the decline in demand for smart phones, servers and personal computers, which affected the demand for DRAM, and decided to delay the launch of new capacity. Nearly 40% of SK hynix's revenue last year came from China, of which Huawei accounted for 12%.

Industry insiders pointed out that since the first quarter of this year, Samsung and Micron have felt the pressure of rising DRAM inventory levels. Samsung also launched a price war in the first quarter and regained a lot of market share. Micron faced pressure on the account this quarter and followed up with price cuts. Inventories have increased the DRAM decline in the first half of the year.

The industry said that after the DRAM price experienced a violent downtrend, it has seen a rebound in demand in the near future. First of all, in the past few months, the North American server market, which has been stagnant in demand, has been recovering. As for consumer electronics and computer products, the system has also begun to expand the demand for stocks due to the shortage of Intel CPUs in the second half of the year.

Major memory manufacturers and module manufacturers are still optimistic about the long-term development of DRAM and storage flash memory (NANDFlash), mainly due to the entry into 5G and artificial intelligence (AI) era, regardless of cloud server and edge green computing, need memory as high-speed operation And storage components. At present, the two major memories have fallen due to the short-term demand, but the future application demand will continue to bloom in various fields. The two major memories have become key components of semiconductors, and long-term development is expected.