As DRAM Price Drops about 10% in Oct.
Concerns are increasing over Samsung Electronics and SK Hynix with the DRAM price having dropped 10 percent or so last month. Under the circumstances, both decided to control their DRAM supply volumes while not increasing related capital expenditures.
According to market research firm TrendForce, the average contract price of DDR4 8Gb was US$3.71 last month, down 9.51 percent from the previous month. The rate of decline reached the highest since July 2019, when the price plunged 11.18 percent.
The supply control is scheduled to be initiated in the fourth quarter. At the same time, each is planning to increase its foundry production capacity. Specifically, Samsung Electronics is aiming to triple its capacity by 2026 by building a plant in the United States and expanding its facilities in South Korea. SK Hynix acquired Key Foundry on Oct. 29 in order to double its capacity.