Samsung plans to limit its NAND and DRAM production next year. The Korean electronics giant would do this, to keep supply tight due to expected lower demand, according to anonymous sources of Bloomberg. The company might also lower production to maintain or drive up NAND and DRAM chips, according to the same sources of Bloomberg.
Earlier this year, Samsung expected that the amount of produced DRAM memory would increase with 20% and the amount of produced NAND memory would increase with 40%. According to Bloomberg’s sources Samsung has lowered those numbers to 20% less growth for DRAM memory and 30% less growth for NAND memory.
If Samsung indeed lowers its production capacity it could have a positive effect on NAND and DRAM prices for other large memory-chip manufacturers such as Micron and SK Hynix as well.
“There are only three major players left and they have the power to control supplies,” said Park Sung-shin, a fund manager at KTB Asset Management Co.
“If Samsung does cut its DRAM bit growth, it shows the company is happy with the current oligopoly market structure,” according to Anthea Lai, an analyst at Bloomberg Intelligence in Hong Kong. “It prefers keeping supply tight and prices high, rather than taking market share and risking lower prices, therefore chances for DRAM prices to stay strong is higher.”