Samsung is concerned about memory prices, Bloomberg reports-- so much so the S. Korean giant plans to keep memory chip supplies tight come next year, amid forecasts of demand slowing down.
Such a move would maintain (if not drive up) memory chip prices, at least according to unidentified people "discussing the plan." Currently Samsung expects growth of less than 20% for DRAM, while NAND flash should grow by 30%, down from previous forecasts of 20% growth for DRAM and 40% for NAND in 2018.
Semiconductors are the biggest and most profitable business for Samsung, generating income worth $31.4 billion in 2017, over double over 2016, leading to record results. However analysts point out the tendency of the semiconductor industry to go through boom and bust cycles, and investors worry the recent years of record profits will lead to a downturn.
Should Samsung, the biggest supplier of DRAM and NAND flash, reduce production, one can expect SK Hynix and Micron Technology to follow suit-- even if legally the 3 companies cannot collude and agree on a set price. That said, Bloomberg points out if Samsung cuts DRAM growth it will show it is "happy" with the current oligopoly, and is willing to maintain prices over gaining memory market share.
Go Samsung Plans Lower Chip Growth Amid Price Concern, Sources Say (Bloomberg)
