According to the news, Samsung will start the price reduction of memory chips next year to increase its market share

Source: IT Home Author: Ocean

    On December 28, according to DIGITIMES, sources from IC distributors and test equipment suppliers revealed that although the uncertainty of demand still exists, Samsung Electronics is expected to significantly reduce the price of memory chips next year to further increase its share in the global memory chip market.

    It is learned that the latest report of research institutions and securities companies shows that the revenue of Samsung Electronics wafer foundry business reached $5.584 billion in the third quarter of this year, higher than the sales of NAND flash memory business of $4.3 billion. Foreign media reported that this was the first time that the revenue of Samsung Electronics wafer foundry business exceeded that of NAND flash memory business.

    The reason is that, on the one hand, Samsung‘s wafer foundry business has developed rapidly, which is mainly due to the increased demand for customized chips related to artificial intelligence and 5G communication, the improvement of the yield rate of advanced manufacturing processes, and the improvement of the competitiveness of mature manufacturing processes. On the other hand, NAND flash memory business suffered setbacks. Due to the decline in demand for personal computers and smart phones, the demand and price of NAND flash memory both fell, and the contract price of NAND flash memory fell 13.9% from the end of last year.

    According to the Korea Times, as of the second quarter of this year, Samsung Electronics accounted for 43.5% of the DRAM chip market share, followed by SK Hynix of South Korea accounting for 27.4% of the market share, and Micron Technology of the United States accounting for about 24.5%.