Current memory prices are completely out of whack. As we all know, demand for AI is very strong, and production lines are giving priority to the production of HBMs, the chips used in high-performance AI hardware. While giants like Samsung, SK Hynix and Micron are investing cautiously to avoid overcapacity (which would drive down prices and threaten their profitability), it’s in China that things could change. That’s what Samsung consultant Kye-hyun Kyung has to say.
Could China bring down memory prices?
CXMT invests massively in production capacity!
Obviously, the current situation is clearly not good for the consumer market. High memory prices are leading to significant price rises on key components (mainly RAM and SSD kits), discouraging hardware renewal. CPU and motherboard shipments are therefore at half-mast. But all this could come to an end as early as next year, if investments by Chinese producers, led by CXMT, bear fruit.
If all goes well, by the second half of 2027, wafer production could reach 6 million units. This would bolster supply to rebalance the supply/demand ratio, and prices could fall as early as the second half of next year.
Towards the risk of overproduction?
However, there is also a risk of overproduction. As we have seen, Micron and SK Hynix are building new factories. Micron in the USA(New York State) and Sk Hynix with its P&T7 in South Korea. And let’s not forget China’s ability to make a mess of the market. For a while, there was talk of Samsung and Sk Hynix are investing cautiously to avoid overcapacity because Chinese manufacturers were too aggressive on price. The profitability of Korean companies was under threat at the time.
In any case, we can’t wait for prices to come down and for the market to regain some stability.
