Samsung and other storage manufacturers attitude is clear: will continue to reduce production

With the memory chip manufacturers to reduce production to protect the price strategy works, Samsung and other attitudes are very clear, Q4 will continue to reduce production.

According to TrendForce Tiburon Consulting survey, the third quarter of 2023 memory industry combined revenue amounted to 13.480 billion U.S. dollars, a quarterly growth rate of about 18.0%.

Among them, Samsung Q3 revenue growth of 15.9%, SK Hynix growth of 24.3%, Micron growth of 4.2%.

In the fourth quarter, the storage manufacturers have a clear attitude to price increases, and it is estimated that the contract price of memory in the fourth quarter will rise by about 13~18%.

Taking Samsung as an example, at the end of the third quarter, Samsung expanded production cuts in order to effectively slow down inventory pressure, mainly for DDR4 products with high inventory, and production cuts will be expanded to 30% in the fourth quarter.

According to the report, the memory Q4 contract price offer is better than the market expectation, DDR5 rose 15-20%, DDR4 rose 10-15%, DDR3 rose 10%, the rate of increase is better than the original estimate of 5-10%.

Taiwan Business Times recently reported also pointed out that with Samsung, SK Hynix and other international memory manufacturers to expand production cuts, Micron production cuts will continue until 2024.