To Analysts said The PC storage drive industry will have a strong impact on the industry due to the current decline in memory and SSD prices due to lower production costs and lower overhead costs. Big manufacturers like Samsung, SK Hynix, and Micron, for their part, will have to reduce sales and raise prices to keep prices reasonable before the price drops too drastically.
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Samsung is reducing supply and raising the price of memory to deal with falling demand
According to the latest report released by Citigroup, SK Hynix and Micron have already reported production declines in the past few quarters, but this time Samsung is looking at it to improve the market situation.
NAND flash memory chip prices are expected to decline due to reduced supply by major manufacturers such as Micron and Kioxia, and market demand is likely to be lower in the first quarter of 2023.
Sources in the storage drive market have said that Samsung will lose nearly $1 billion in revenue from its semiconductor sales in the first quarter, and that figure is expected to double in the second quarter. If the company doesn’t take drastic measures to correct NAND memory prices and continue to undercut manufacturers’ retail prices, it may lose its foothold in the industry forever.
TrendForce also predicts that between ten and fifteen percent of the volume of NAND flash memory will disappear in the first quarter of this year, and we should expect a decrease in the price of SSD memory.
Micron CEO and Chairman Sanjay Mehrotra met with US President Joe Biden earlier this year to discuss the semiconductor chip shortage. During the talks, Mehrotra discussed the possibility of relying on partnerships with the private sector to help position the United States in a better position in the chip market. He also said the company will invest $150 billion over the next decade to increase research and development and manufacturing memory, including SSDs.
This partnership with the private sector also includes Asian countries, one of which is China. Due to recent global conflicts, China has been deprived of resources outside its borders. This issue has been and will continue to be attributed to memory market problems and others. Unfortunately, it is unclear when the affected markets will recover, which could mean riskier trading actions to deal with overall losses.
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