With revenues crashing, Samsung will make fewer DRAM chips to try and save the day:
While Nvidia decided to adopt an insane price policy for its latest generation of gaming GPUs, market conditions for other hardware components have never been better for consumers. Memory chips for SSD drives and DRAM memory modules are very affordable right now, and manufacturers are struggling to adapt their businesses to this new trend.
Being one of the largest DRAM chip manufacturers in the world, Samsung is experiencing a rather critical moment in its recent history. The company's revenues suffered a -18% year-over-year drop in the first quarter of 2023, while profits have essentially evaporated with the worst result recorded for the past 14 years (-95%).
Global DRAM and SSD prices are expected to become even cheaper in the coming months, which will clearly affect any rebound effort put in place by manufacturers. Samsung recently said that it was preparing to cut back on chip production, and now we know the cut will likely be a significant one.
The Korean giant is seemingly expected to decrease its chip manufacturing output for DDR4 memory modules, a move that will last for 3 to 6 months (two quarters) at least. Samsung's total wafer input will be reduced by 5-7%, which will likely have further negative consequences on an already struggling market.
[...] Samsung isn't new to this kind of production-cutting choice, as the corporation cut down production of DDR3 memory modules in August 2022. At that time, Samsung was trying to promote a wider (and faster) adoption of the newest DDR5 memory modules while still supporting the DDR4 market, forcing router manufacturers and the other companies still using the slower (and cheaper) DDR3 modules to upgrade their memory needs.
Besides cutting production and making DDR3 modules cheaper, in 2022 Samsung also offered discounts on DDR4 and DDR5 chip prices. And the adoption rate of the newer memory standards grew accordingly. Now, consumers have taken a more conservative approach to hi-tech spending, and Samsung is seemingly willing to make its chip-making machines rest while waiting for a market rebound.
(Score: 0) by Anonymous Coward on Tuesday May 16 2023, @02:15AM (2 children)
Giving us the Invisible Finger!
(Score: 0) by Anonymous Coward on Tuesday May 16 2023, @03:29AM
(Score: 2) by Freeman on Tuesday May 16 2023, @07:32PM
I mean, as far as this topic goes, we can just say that Samsung is deliberately screwing with us.
They seem to have a nice track record with this sort of thing: https://www.cnet.com/home/smart-home/lcd-makers-fined-388-million-for-alleged-price-fixing/ [cnet.com]
Sure, that was colluding with other LCD makers. Not just reducing their own production.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
(Score: 3, Insightful) by takyon on Tuesday May 16 2023, @03:29AM
https://soylentnews.org/~takyon/journal/14319 [soylentnews.org]
Get that RAM.
I'm thinking about an SSD, but I don't really need it.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Tuesday May 16 2023, @07:20AM
How nice of them to make it easier for their competition to succeed.
(Score: 3, Informative) by RedGreen on Tuesday May 16 2023, @10:21AM
Let me get out the violin to play while I cry for their plight. The parasites who have been ripping us off for years are getting a lesson in what happens when you screw the customer over for too long. They decide to stop buying and your outrageous profiteering opportunities evaporate. Too bad they are so hard done by that the new bonuses for the executives will have to wait until the new ripoff gets into full swing. Too bad all my machines using ddr4 are already at their max when I bought and built them at the last low in the cycle. I have been looking to upgrade like I usually do by now. But seeing the continuing ripoff on the new parts still on display recently it will be cold day in hell before I buy any new parts to build one. The machines I have are powerful enough I keep them until things start to die in them. Though some dirt cheap large capacity SSDs may tempt me to open the wallet, I doubt it though their idea of low prices and mine never seem to meet.
"I modded down, down, down, and the flames went higher." -- Sven Olsen