Memory chip industry: Decline in demand affects performance, signs of market recovery appear

According to news on May 25, the memory chip industry faced the challenge of declining demand in the second half of last year, which had an impact on the performance of manufacturers such as Samsung Electronics and SK Hynix. Samsung Electronics' storage business and SK Hynix's overall revenue have declined sharply year-on-year for three consecutive quarters, while SK Hynix suffered net losses in the fourth quarter of last year and the first quarter of this year.

The supply and demand situation of memory chips shows signs of improvement, as manufacturers have implemented production reduction measures and market conditions have further improved. Manufacturers' DRAM supply is expected to be unable to meet market demand as soon as July, according to the latest reports.

In the latest report, the research institution has adjusted the demand and supply of DRAM for the whole year. The demand is expected to exceed 105.4 billion 2GB chips, which is higher than the original expected supply of 104.3 billion.

According to the editor’s understanding, it is worth noting that previous market research institutions had similar predictions in April, but at that time they expected the full-year supply to reach 155 billion pieces, exceeding demand by 146 billion pieces. Although the May report revised down both supply and demand, demand will still be higher than supply.

According to foreign media reports, research institutions predict that the demand for DRAM throughout the year will exceed supply, which is mainly affected by Samsung Electronics’ production reduction measures. As the world's largest memory chip manufacturer, Samsung Electronics changed its previous strategy of not artificially cutting production in April and instead adopted meaningful production reduction levels.

Overall, the memory chip industry is gradually coming out of the downturn. As market demand picks up and manufacturers adjust production strategies, it is expected to achieve a balance between supply and demand. For manufacturers such as Samsung Electronics, timely production reduction measures can help stabilize the market and lay the foundation for future growth.

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