Memory chips fell sharply to a 15-year low, which is beneficial to Chinese chip manufacturers

Recently, some media reports said that as mobile phones, PCs, servers and other products are not easy to sell, and after the historical decline in demand, the storage chips are also falling.
At present, both DRAM and NAND memory chips have reached a new low since 2008, which can be said to be down to 15 years ago.
Memory chips fell sharply to a 16-year low, which is beneficial to Chinese chip manufacturers
However, due to the sharp drop in prices, the performance of Samsung, SK Hynix and Meguiar was poor. Meguiar and SK Hynix lost money in the fourth quarter, and the prices will not recover in 2023, and may even fall.
TrendForce even predicted that the collective operating losses of memory chip manufacturers in 2023 would reach a record-breaking $5 billion, saying that almost every memory chip was losing money and selling much more.
In such a bleak situation, all the storage chip manufacturers are not very good. So we see that Meiguang, SK Hynix, Samsung and other companies are reducing production, even layoffs.
Memory chips fell sharply to a 16-year low, which is beneficial to Chinese chip manufacturers
But really, this wave of price reduction may be a good opportunity and very beneficial for Chinese memory chip manufacturers.
First of all, China is the world’s largest demand market for memory chips. With this market support, domestic memory chips will not worry about the market, and the demand will not be so miserable.
Secondly, Chinese manufacturers will be better at cost control, which is based on the advantages of Chinese manufacturing and sound industrial system. Foreign manufacturers are at a natural disadvantage in this area.
Memory chips fell sharply to a 16-year low, which is beneficial to Chinese chip manufacturers
Third, at present, China is making great efforts to develop the Chinese chip and try to get rid of the dependence on foreign chips. Therefore, domestic storage manufacturers have massive financial support and are not afraid of price.
You should know that the secret of Samsung’s success is to fight a price war, operate against the market, expand its production at the lowest point, and reduce its price, and then kill its rivals to gain the largest share.
Now, Chinese memory chip manufacturers are actually more confident than Samsung in operating in reverse cycle, so it is possible to take advantage of this wave of price reduction to gain more market share.
Memory chips fell sharply to a 16-year low, which is beneficial to Chinese chip manufacturers
However, you should also note that at present, domestic memory chip manufacturers are being suppressed. The idea of the United States is to lock up our manufacturing of 128-layer and above 3D NAND and the development of DRAM at 18nm and below. At present, some advanced equipment has been banned.
So although the long-term storage has achieved the mass production of 232 layers of 3D NAND, there are still problems in the subsequent capacity expansion estimation, which is also the key to affect the development of domestic storage chip manufacturers.
If this problem is solved, we can really win a huge market share by following Samsung’s counter-cyclical operation with this downward trend, don’t you think?