Wednesday, October 18th 2017
DRAM Output in 2018 Planned for Continued High Pricing - TrendForce
DRAMeXchange, a division of TrendForce, has come forward with the expected announcement that DRAM output in 2018 likely won't be enough to fully satisfy supply. This has been the case for some time now. However, what started with simple insufficient output that could contain the explosion of DRAM capacity in smartphones seems to now be turning into a conscious decision by the three top memory manufacturers. Samsung, Micron, and SK Hynix are seemingly setting output at a lower than required level so as to artificially inflate pricing due to low supply. TrendForce themselves say so, in that these suppliers "(...) have opted to slow down their capacity expansions and technology migrations so that they can keep next year's prices at the same high level as during this year's second half. Doing so will also help them to sustain a strong profit margin."
DRAM production is expected to increase by 19,6% in 2018; however, this ratio is lower than the expected growth in demand, which is being pegged at 20,6%. This means 2018 is likely to see increased constraint in the supply channels (whereas 2018 was actually expected to see a slight relief in supply issues). This means that pricing will either stabilize or tend to increase from current levels. To be fair, semiconductor production isn't as simple as hitting a "increase production by 10x" button; reports say that all three players are contending with insufficient room to expand output on their production lines, and getting a new production facility online isn't a trivial effort - neither in funds, nor on time. However... All involved companies would much rather keep prices as they are than see them being brought down by oversupply.
Source:
TrendForce
DRAM production is expected to increase by 19,6% in 2018; however, this ratio is lower than the expected growth in demand, which is being pegged at 20,6%. This means 2018 is likely to see increased constraint in the supply channels (whereas 2018 was actually expected to see a slight relief in supply issues). This means that pricing will either stabilize or tend to increase from current levels. To be fair, semiconductor production isn't as simple as hitting a "increase production by 10x" button; reports say that all three players are contending with insufficient room to expand output on their production lines, and getting a new production facility online isn't a trivial effort - neither in funds, nor on time. However... All involved companies would much rather keep prices as they are than see them being brought down by oversupply.
46 Comments on DRAM Output in 2018 Planned for Continued High Pricing - TrendForce
As customers, have have 0 control over the pricing. No one can just open a DRAM factory and make chips for the whole world at half the price.
Its a rigged game. An extremely annoying one.
Nor does he get much credit for it btw (he's "literally Hitler" and all that ;) ).
But go ahead and put your head back in the sand, or up Trump's ass. Your comment literally had nothing to do with the article.
As for the thread: The post I quoted mentioned lobbies. Therefore I talked about changes on lobbies in Washington. What DOESN'T have anything to do with it is attacking me on some personal level.
I don't have time to tell you my life story, but since you're interested in "me": I voted for Hillary. The fact that I can give credit to the guy at times is not putting my head in the sand. It's quite the opposite. I'm proud of that. I'm not out for blood at a moment's notice like you are.
edit: Article points out the fishiness of the waivers, but I think it needs more than that. I thought it was going to be longer.. I guess I didn't need to hold off reading it, after all.
What's messed up is that if they take a hit at their factory and things go poorly they don't even lose, they just hike up prices to offset their losses, gas companies all do it as well.
Im on a SM-G900T which is fully unlocked. I have no point in going to another phone that is 800-1000 bux when i got this one 250 brand new...
Price fixing can only be established when in fact there is tangible proof of collusion, but when companies tacitly agree to not increase production or capacity there is very little FTC or EU can do about it, nothing to be precise.
Seeing how they got caught last time around I'm willing to bet there is no collusion but you "scratch my back & I'll do yours" kind of a unwritten agreement.