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Trouble in the Memory Chip Market... Or Not

Accepted submission by takyon at 2018-01-15 23:37:26

The explosive growth in the NAND flash market may be slowing down []:

After a blistering year-and-a-half long surge, a sudden drop in some memory prices, followed by Samsung Electronics Co's disappointing profit estimate, is causing jitters among investors who had bet the chip boom would last at least another year.

Amid news that the market has started losing some steam - prices of high-end flash memory chips, which are widely used in smartphones, dropped nearly 5 percent in the fourth quarter - some analysts now expect the industry's growth rate will fall by more than half this year to 30 percent.

That led shares in Samsung to dip 7.5 percent last week, while its home rival SK Hynix fell 6.2 percent. But analysts say that there is unlikely to be a sudden crash, and that 2018 should be a relatively stable year for chipmakers.

The $122 billion memory chip industry has enjoyed an unprecedented boom since mid-2016, expanding nearly 70 percent in 2017 alone thanks to robust growth of smartphones and cloud services that require more powerful chips that can store more data.

Previously: Samsung Set to Outpace Intel in Semiconductor Revenues []
Chaos as Toshiba Tries to Sell Memory Business []
IC Insights Predicts Additional 40% Increase in DRAM Prices []
Expect 20-30% Cheaper NAND in Late 2018 []

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