Shulou(Shulou.com)11/24 Report--

CTOnews.com March 13 news, the first quarter of this year memory semiconductor market situation deteriorated more than expected, inventory levels once reached a dangerous level, but Samsung Electronics has been ready for a long-term battle.

The current news suggests that Samsung Electronics and SK Hynix seem to focus more on a five-to 10-year cycle than short-term extreme supply controls as the memory semiconductor market is likely to experience negative growth this year.

A source familiar with Samsung Electronics said that "Samsung Electronics has no plans to significantly adjust supply or reduce production in the short term," Chaoyi Daily reported today, explaining that most of the internal reference indicators are single-digit market demand growth in five to 10 years.

According to reports, the natural reduction in production brought about by the repositioning of the production line and process transformation is the highest level of supply regulation that can be carried out at present.

Although its competitors SK Hynix and Micron announced cuts in investment and production, Samsung Electronics maintained its position of "not artificially reducing production." This is also reflected in Mr Lee's recent speech: "despite the difficult situation, we must not waver in training talent and investing in future technology."

In the first quarter of this year, the inventory level continued to rise due to the delay of memory delivery due to the inventory backlog of major customers. SK Securities predicts that Samsung's inventory will rise to more than 13 weeks in the first quarter of this year and about 15 weeks by the end of the first quarter. This figure is four times the normal level. Analysts point out that the second quarter will increase to 20 weeks and inventories will accumulate for five to six months.

According to TrendForce, global DRAM sales fell 32.5% to $12.281 billion in the fourth quarter of last year from the previous quarter (CTOnews.com Note: currently about 85.23 billion yuan), close to the 36% decline in the fourth quarter of 2008 when the global financial crisis hit, but Samsung Electronics's market share rose from 40.7% to 45.1%, an increase of 4.4 percentage points.

Related readings:

"the latest revenue ranking of self-branded memory made by DDR5 Global DRAM Factory has been released by 30% 35%."

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.