Samsung drops DDR4 production
Samsung, one of the world’s largest DRAM chip manufacturers, is going through a very critical period. The company’s revenues fell 18 percent year-on-year in the first quarter of 2023, while profits nearly evaporated in the worst result of the last 14 years (-95%). Global DRAM and SSD prices are expected to get even cheaper in the coming months, clearly making it harder for manufacturers to recover. Samsung recently announced that it is preparing to cut chip production, and we now know that this cut will likely be a significant one.
Last year, Samsung significantly reduced the production of DDR3 memory. At that time, the company wanted to direct its corporate or consumer customers to new technologies. It seems that the firm is entering a similar policy process again. But differently, consumers are now adopting a more conservative approach to high-tech spending. As a result of this production reduction, which is expected to last for several quarters, Samsung may expect prices to recover.