‘Samsung and SK Hynix pause memory production expansion due to price drop’

Samsung has shelved its plans to expand its dram production and SK-Hynix is ​​waiting to further increase its 3D nand manufacturing, DigiTimes reports. The cause is said to be falling demand and the resulting fall in memory prices.

Samsung had planned to process an additional 30,000 wafers per month for its dram production from the third quarter of this year, but expansion of its facilities in Korea’s Hwaseong and Pyeongtaek has been halted, according to DigiTimes. The site also writes that SK-Hynix has stepped up its expansion of its 3d nand production.

The changes are said to be related to falling memory chip prices, as there is less demand for it. The underlying reason for this would be the saturated laptop and smartphone market.

Falling demand would lead to overcapacity in the nand market and for dram that would happen in the fourth quarter. Prices on the nand market could therefore fall by 15 percent and for dram a fall is on the horizon by the end of this year. This concerns the prices that manufacturers agree with large customers, not consumer prices.