“class =” b_line “/>
The global memory chip market will be hit by a glut of supply next year, a Taiwan-based semiconductor industry tracker warned, adding to the woes of South Korean memory giants Samsung Electronics Co and SK hynix Inc. which saw their shares plunge due to concerns. on a shredding cycle.
The country’s flagship chip stock, Samsung Electronics, fell below 70,000 won ($ 58.8) this week for the first time since December last year. It traded up 0.87% to 69,400 in morning trading on Thursday.
DRAM maker No.2 SK hynix is trading up 2.28% to 94,100 won after falling more than 11% between October 1 and October 12, falling below the 100,000 level won.
Shares of Korea’s flagship chip names fell amid gloomy demand prospects for their core memory chips. To add to the woes, Taiwanese memory market research firm TrendForce estimated on Wednesday that the average selling price (ASP) of DRAM chips next year will decrease by 15-20% from this year due to ‘a problem of oversupply.
TrendForce predicted that the overall DRAM supply next year is expected to increase 17.9% year-on-year, surpassing a 16.3% growth in demand, as major buyers are reluctant to place new orders for smartphones, servers and PCs amid protracted supply chain disruptions. which also allowed them to secure enough inventory at the start of this year. It also predicts that laptop shipments will drop 7% to 220 million units.
Samsung Electronics, the world’s largest memory supplier, will increase chip production by 19.6 percent as Pyeongtaek Campus’ new P3 manufacturing line is expected to be completed next year, according to the TrendForce report. SK hynix, the second largest DRAM producer behind Samsung, is also expected to increase its memory production capacity by 17.7% as it prepares for mass production at its new M16 DRAM factory on the Icheon campus.
An electricity crisis in China could worsen the situation as it would lead to prolonged shortages of memoryless chips and spare parts adding to supply disruptions, a KB Securities analyst explained.
However, since chipmakers have already made most of the supply deals for next year, a sharp drop in prices is unlikely, a semiconductor industry source said.
By Park Jae-young and Lee Soo-min
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]