Samsung’s memory business is going through tough challenges as it has fallen behind SK Hynix in the high-performance HBM3E market and is still awaiting a beneficial order from NVIDIA.
Samsung’s memory business was once a major revenue source but is now facing increasing challenges and has lost ground to SK Hynix in the high-value HBM3E market and is awaiting a crucial NVIDIA order.
On the competitor side, its rival Chinese memory manufacturers led to a 20% price drop in DRAM and NAND products last month. The pricing issue has been constituted by inactive demand from device manufacturers, leading to a beneficial oversupply.
The latest data from DRAMeXhange hints that the PC DRAM prices for DDR4 8Gb modules have tapered off by 20.59% month-over-month to $1.35, and this is the lowest price since September 2023 when it was at $1.30.
Noticeably, the fall in NAND flash memory prices has been specifically steep, with a 29.8% drop for 128Gb modules in the last month, and this year-long decline has forced NAND prices to their lowest point since August 2015.
Now to deal with this situation, Samsung has reduced production to stabilize prices; however, it still seems that the situation could remain challenging since Chinese manufacturers continue to expand their production capacity. It remains to see exactly what will happen next.
