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Samsung electronics raises NAND flash memory prices,it will not be able to recover in a short time !

  • Published:2019-11-19 02:16:10
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  • Click Count:54

Samsung electronics is planning to raise the price of its NAND flash memory by 10 per cent amid growing Japanese government concerns about production disruptions caused by export restrictions on semiconductor materials.Others, such as micron, are likely to follow.


Samsung electronics' supply and demand situation improved recently after a power outage at Toshiba.In addition, NAND flash storage inventories have been reduced to four weeks, about half of DRAM inventory, and demand for NAND flash has been rising in recent days after prices fell sharply.


The price of this project has not decreased at this time.The contract price, which applies to intercompany transactions, was suspended for seven months in June, when the 128-gb MLC sold for $3.93.In addition, spot prices have risen slightly recently


Samsung's move is related to the price drop that has been going on recently.At $3.93 in June, it was the lowest price since September 2016, when it was $3.75.As a reference, a year ago the price was as high as $5.50.Contract prices were little changed last month, while DRAM contracts fell 11.73 percent


Toshiba, meanwhile, is the industry's second-largest product, with production down more than 20 per cent after the accident.Not only Toshiba but also western data manufactures NAND flash memory at Toshiba's manufacturing plants.The incident has had a significant impact on samsung electronics and SK hynix's inventories, as Toshiba and western digital have a strong market share of 19.3 per cent and 15.3 per cent, respectively


What matters is whether smartphone makers and server companies continue to increase demand after the planned price increases.Industry insiders say the global semiconductor industry is unlikely to recover in the first half of next year, meaning the current price rise is unlikely to continue.Instead, the planned price rise reflects the desperation of NAND flash memory makers, which are losing money except for samsung electronics

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